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'CEOs are uniquely prone to AI psychosis': Tech founder says AI frenzy has bosses detached from real work

"If leaders treat AI as a near-magical replacement for human labor instead of as a tool that still needs careful supervision, employees can end up carrying the burden while companies chase unrealistic goals."

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A blunt warning from one tech CEO is fueling a broader debate over the artificial intelligence boom — and whether the people leading it are too far removed from the actual work to understand its limits.

Futurism reported that Aaron Levie, founder and CEO of cloud computing company Box, is drawing attention online after arguing that many CEOs have "AI psychosis" — a phrase he used to describe executives overestimating what artificial intelligence can do within companies.

What happened?

In a post on the social platform X, Levie argued that senior leaders are especially susceptible to AI hype because they often do not see the work required to turn an impressive demo into something a company can actually use.

"CEOs are uniquely prone to AI psychosis because they're sufficiently distant from the last mile of work that still has to happen to generate most value with AI," he said.

He described how executives who proudly present an AI-built prototype often don't realize how much additional work remains before it is ready to launch.

Why does it matter?

AI decisions made in the executive suite can affect jobs.

If leaders treat AI as a near-magical replacement for human labor rather than a tool that still needs careful supervision, employees can end up carrying the burden while companies chase unrealistic goals.

His critique also reflects a familiar management issue: top leaders losing sight of what day-to-day work involves.

From that perspective, the problem may be less a distinct form of AI mania than a case of organizational blindness made worse by hype and pressure for profits.

What are people saying?

Joe Wilkins, who wrote the Futurism report, noted that executive-level employees often fail to recognize the amount of hands-on labor required to make systems function in practice.

"In today's world, many executives and managers operate at an abstract level, working via spreadsheets, emails, and Zoom meetings," Wilkins said. "This is different from concrete labor, meaning the specific, friction-heavy tasks that workers perform, like writing code or wiring server racks."

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