TechCrunch AIMay 29, 2026, 2:00 PMKirsten Korosec, Anthony Ha, Sean O'Kane, Theresa Loconsolo

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

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

Aaron Levie argues many CEOs overestimate AI’s ability to replace jobs they barely understand.

Box founder Aaron Levie calls some executive thinking around AI replacement “AI psychosis.” He argues that the people deciding AI can replace workers are often the least likely to understand what those jobs truly involve. The article frames this against ClickUp cutting 22% of staff for AI agents and 2026 tech layoffs nearly matching all of 2025.

This TechCrunch AI podcast content focuses on the critical views of Box founder Aaron Levie on enterprise AI adoption. He calls the expectations many CEOs and corporate executives have of AI "AI psychosis," meaning that some decision-makers may overly believe AI can quickly and directly replace human work, without truly understanding the context, judgment, collaboration, and tacit knowledge behind employees' daily work. Levie's point is not to deny AI's value, but to point out a gap in organizational governance: the person with the most power to decide whether AI can replace a given position is often also the person least clear about what that position's actual work involves.

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