The tech industry is currently experiencing a unique form of turmoil. While reminiscent of the cost spikes during the cloud computing era, it differs due to mass layoffs occurring against a backdrop of record profits. A new industry theory suggests that major executives, particularly CEOs, are suffering from a delusion of grandeur caused by artificial intelligence. This is reported by Techcrunch.com reports .
Box founder Aaron Levie has openly dubbed this phenomenon "AI psychosis." He believes executives have become too detached from the real workflows required to create value with AI. Levie wrote on the social network X that CEOs are simply "playing" with AI, creating prototypes or generating contract text, and then drawing the false conclusion that agents can handle all the work.
In reality, senior executives do not engage in checking code before deployment, finding bugs, or identifying libraries hallucinated by AI. They also do not take responsibility for training AI models on the company's specific contract terms. According to Levie's theory, leaders lack the sufficient knowledge to understand which processes can be automated and which cannot.
It is worth noting that Levie is not against artificial intelligence. On the contrary, he shares positive posts about the future of AI with his 2.7 million followers and invests in many startups. His advice is that leaders must use AI extensively to truly understand its capabilities, recognizing both its benefits and the aspects that require real labor.
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