A recent blog post by Zhang Xiang on Cnblogs has sparked discussion around a term coined by Box CEO Aaron Levie: 'AI psychosis.' The concept describes a growing trend where non-technical executives in tech companies use artificial intelligence as a convenient justification for mass layoffs and engineering asset stripping. The author argues that this behavior is not a rational response to technological progress but a collective cognitive failure—decision-makers, long detached from hands-on engineering, mistake AI hype for a mandate to reset their workforce. For engineering leaders and technical founders, this signal is a warning: the gap between AI's actual capabilities and executive perception is widening. Rather than blindly following the trend, leaders should critically evaluate whether layoffs truly serve innovation or merely reflect a misunderstanding of AI's role in software development. The post calls for a more nuanced conversation about AI adoption, one that prioritizes genuine engineering value over short-term cost-cutting.
A critical analysis of how tech executives use AI as a cover for layoffs, introducing the concept of 'AI psychosis' from Box CEO Aaron Levie.