“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.”

By Joe Wilkins

Published May 28, 2026 (Futurism.com)

It’s no secret that many of the world’s top CEOs are obsessed with AI. By pursuing lofty goals of complete AI automation, these executives have created one of the largest financial bubbles in recent memory while transforming the job market into a barren wasteland, with little to show for their efforts so far.

As the top tech companies have yet to find a way to turn AI into a profitable venture, those decisions to go all-in on AI are looking increasingly delusional. According to Aaron Levie, CEO and founder of the massive cloud computing company Box, there’s a simple explanation for it: many of his colleagues are suffering from AI psychosis.

“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,” Levie wrote on X-formerly-Twitter. Translation: AI-happy CEOs are out of touch with the rank-and-file workers tasked with making their AI ambitions come to life.

As an example, Levie offers cases in which corporate executives say “look I made this awesome product prototype” with an AI chatbot. “Yes but you didn’t have to review the code before it went into production and fix a bunch of issues,” he retorts.

Whether “AI psychosis” is the best metaphor for this concept is up for debate. Arguably the most common definition of AI psychosis is that it’s a phenomenon where extreme interactions with AI triggers or amplifies delusions or paranoia, sometimes already existing and sometimes seemingly newly cooked up with the AI. The symptoms can be extreme, with AI chatbots convincing victims that they’re communing with God-like entities, or have singlehandedly uncovered a grave threat to humankind.

There are indeed some executives who seem to fit the bill. Last year, Futurism reported that colleagues of Geoff Lewis, managing partner of the multi-billion dollar investment firm Bedrock, were concerned that he was suffering from a break with reality after spending too much time with ChatGPT (ironically, Bedrock was an early investor in OpenAI.) In that case, Lewis had claimed to be mapping an incomprehensible “non-governmental system” that was designed to disrupt his life.

That said, there’s a major gap between an exec believing they’re targeted by a vast conspiratorial network and an exec buying into AI hype. The phenomenon Levie is identifying might better fall under “organizational blindness,” a known phenomenon where leaders of a company find themselves disconnected from the reality of work on the ground. Coupled with a ravenous hunger for profit, this kind of tunnel vision seems to be exactly what we’re seeing in companies around the globe.

In today’s world, many executives and managers operate at an abstract level, working via spreadsheets, emails and Zoom meetings. This is different from concrete labor, meaning the specific, friction-heavy tasks that workers perform, like writing code or wiring server racks. When a board-room full of executives loses sight of this tangible labor — by failing to consider the kinds of tasks AI chatbots are actually good at, for example — it can certainly create a break from material reality, though one driven by social factors rather than psychological.

In other words, there are two possibilities: either the world’s CEOs are losing their minds, or they’re just succumbing to the latest manifestation of capitalism run amok. Occam’s razor probably suggests the latter.

More on AI and CEOs: 99 Percent of CEOs Are Preparing to Lay Off Workers and Replace Them With AI Within Two Years, Survey Finds

Joe Wilkins

Correspondent

I’m a tech and labor correspondent for Futurism, where my beat includes the role of emerging technologies in governance, surveillance, and labor.