What happens when companies become too AI-pilled?

Box founder Aaron Levie has been sounding the alarm about what he calls "AI psychosis." He says the very people betting that AI can replace human workers are often the ones who least understand the day‑to‑day reality of those roles.

Levie’s point is more than a gripe; it’s a reminder that AI tools, while powerful, can’t capture the tacit knowledge and context that experienced staff bring to the table. When decisions are made without that insight, companies risk cutting jobs that are actually essential.

A recent case in point is ClickUp, which announced it would let AI agents take over tasks formerly done by humans, resulting in a 22% cut to its workforce. The move shows how quickly firms can lean on automation, sometimes at the expense of the people who built the product.

The trend isn’t isolated. Tech layoffs in 2026 are already nearly matching the total for all of 2025, suggesting a wave of cuts driven in part by over‑optimistic AI rollout plans. For workers, the message is clear: stay adaptable but also make your unique contributions visible.

If you rely on AI tools in your daily work, this matters because the tools are only as good as the data and intent behind them. Understanding where AI falls short helps you position yourself as the missing link that companies need, rather than a role they think can be fully automated.

From a broader perspective, the hype around AI is prompting a cultural shift in how businesses evaluate talent. Leaders who simply chase cost savings with bots may miss out on innovation that comes from human creativity and judgment.

The takeaway for entrepreneurs and professionals is to treat AI as an assistant, not a replacement. Use it to amplify your expertise, but keep sharpening the skills that no algorithm can replicate.