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Box founder Aaron Levie argues that executives deciding to replace employees with AI often lack deep understanding of the roles being eliminated, dubbing this phenomenon "AI psychosis." The warning comes as companies like ClickUp slash 22% of their workforce for AI agents, with tech layoffs in 2026 already approaching 2025's annual total.
Why it matters: As CEOs increasingly make automation decisions based on AI hype rather than operational reality, this critique challenges the narrative driving 2026's workforce reductions and raises questions about the actual viability and ROI of AI replacements.
