What happens when companies become too AI-pilled?
TechCrunch examines the risks of companies overbelieving AI can replace workers.
TechCrunch discusses the danger of companies becoming overly convinced that AI can replace human roles. Box founder Aaron Levie argues that the people making those decisions often understand the jobs least, calling it a form of “AI psychosis.” The piece cites ClickUp cutting 22% of its workforce for AI agents and notes that 2026 tech layoffs are already nearly matching all of 2025.
This segment from TechCrunch's AI category, drawn from a video, discusses the problem that companies may veer into excessive hype when adopting AI. The article cites the view of Box founder Aaron Levie, who points out that the people deciding "AI can replace a certain job" are often the ones who least understand what that job actually involves. Levie calls this phenomenon "AI psychosis," meaning that companies, amid the AI wave, fall into a state resembling collective superstition: they imagine AI agents or automation systems as solutions that can quickly and comprehensively replace human labor, while ignoring the context, judgment, communication, collaboration, and tacit knowledge behind a role.
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