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. This is not just a complaint. It is a structural warning about leadership blind spots.
Levie’s point is more than a gripe. It serves as 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. The cost of this oversight is becoming increasingly visible in the market.
A recent case in point is ClickUp, which announced it would let AI agents take over tasks formerly done by humans. This resulted 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. It suggests a dangerous feedback loop where early adopters punish long-term thinkers.
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. This acceleration indicates that the market is pricing in automation faster than it is validating its efficacy. As the original outlet noted, this creates a volatile environment for employees.
For workers, the message is clear. You must 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 real competitive advantage now lies in the ability to direct AI with nuanced human context.
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. Your value is in the judgment, not the generation.
What this means for you:
Stop trying to compete with AI on speed or volume. Compete on context. Use this prompt to audit your own workflow for "AI psychosis" risks: "Analyze my top three weekly tasks. Identify which parts require tacit knowledge or complex context that AI might miss, and suggest how I can document or leverage those human-specific insights to justify my role's value."
