Does your CEO have AI psychosis? Aaron Levie thinks most of them do.

In a recent discussion, Box founder Aaron Levie raised concerns about what he terms “AI psychosis,” suggesting that many CEOs pushing for AI-driven workforce reductions lack a true understanding of the roles they are eliminating. This commentary comes at a time when companies like ClickUp have already laid off 22% of their workforce in favor of AI agents, highlighting a growing trend in tech layoffs that is alarming for employees and the industry alike.

Levie argues that the executives making decisions about AI’s potential to replace human jobs often do so without a comprehensive grasp of the complexities involved in those positions. This disconnect could lead to misguided strategies that not only affect employee morale but also disrupt the operational effectiveness of organizations. The current landscape shows that layoffs in 2026 are on track to match the total for 2025, indicating a significant shift in how companies are approaching labor and technology integration. This trend raises questions about the sustainability of relying heavily on AI without fully understanding its implications for workforce dynamics.

For users and the market, this situation underscores the need for a more nuanced conversation about AI’s role in the workplace, emphasizing the importance of human insight in decision-making processes. As companies continue to navigate the balance between automation and human labor, the potential for backlash from employees and stakeholders grows.

Looking ahead, it will be crucial to monitor how companies respond to these challenges and whether they will adapt their strategies to prioritize a more informed approach to AI integration.