WorkThe story, in brief

What happens when companies become too AI-pilled?

NOBODY TALKING: Everyone is focused on AI capability. Nobody is talking about the decision-makers replacing jobs they don't understand.

Illustration of two anonymous hands arranging task cards around an amber tool on a shared desk.
People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

Why it matters

As companies aggressively deploy AI to cut costs, a pattern of misaligned leadership decisions is emerging—executives automating roles without understanding their actual complexity, creating inefficiency and organizational risk. This raises a critical governance question for boards and investors.

The key facts

4 to know
  1. Box founder Aaron Levie coins term 'AI psychosis' for misaligned automation decisions

  2. ClickUp cut 22% of workforce citing AI agents

  3. Tech layoffs in 2026 already nearly matching all of 2025

  4. Disconnect between decision-makers and actual job functions driving poor automation choices

Go to the source

TechCrunch AItechcrunch.com

Publisher excerpt: 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…
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