Execs replace jobs with AI without understanding, warns Box CEO

Box founder Aaron Levie has coined the term 'AI psychosis' to describe a worrying trend: executives who are least familiar with specific job functions are making sweeping decisions to replace those workers with AI agents. As evidence, ClickUp recently cut 22% of its workforce citing the adoption of AI agents, while tech layoffs in 2026 are already on pace to nearly equal the total from all of 2025. Levie argues that these moves ignore the nuanced, context-heavy reality of most roles, risking operational chaos for short-term cost savings.

Meanwhile, user backlash is mounting against AI’s forced integration into search. DuckDuckGo is seeing a surge in installations as users flee Google’s AI-heavy search results, preferring simple link lists. On the TechCrunch Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane debated the simultaneous validity of both the AI-pilled and AI-skeptical perspectives. The episode also covers Waymo’s new robotaxi and three notable deals, underscoring that while AI advances rapidly, the human cost and user experience trade-offs are becoming impossible to ignore.