What happens when companies become too AI-pilled?
Quick Answer
Aaron Levie, founder of Box, warns of 'AI psychosis' as companies like ClickUp cut 22% of their workforce for AI agents.
Quick Take
Aaron Levie, founder of Box, warns of 'AI psychosis' as companies like ClickUp cut 22% of their workforce for AI agents. The trend of tech layoffs in 2026 is already approaching the total for 2025, highlighting a disconnect between decision-makers and the realities of jobs being replaced.
Key Points
- ClickUp has reduced its workforce by 22% due to AI agents.
- Tech layoffs in 2026 are nearing the total for 2025.
- Levie highlights a disconnect between decision-makers and job realities.
- The term 'AI psychosis' describes the overestimation of AI's capabilities.
- Companies may not fully understand the jobs they are replacing.
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The people deciding that AI can replace your job are also the ones least likely to understand what your job truly involves, according to Box founder Aaron Levie, who pointed to this as an example of “AI psychosis.” Indeed, ClickUp recently cut 22% of its workforce for AI agents, tech layoffs in 2026 are already nearly matching all of 2025, and DuckDuckGo installs are climbing from users who want Google to stop forcing AI into search and just give them links.
Watch as TechCrunch’s Equity podcast hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into what happens when the AI-pilled and the AI-skeptical are both right at the same time, plus three deals worth knowing about and Waymo’s new robotaxi hitting the road.
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Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast. Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband. Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.
You can contact or verify outreach from Theresa by emailing theresa.loconsolo@techcrunch.com.
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