A Box founder warns that relying on AI to replace jobs can lead to misunderstandings about their true value. As tech layoffs soar, experts caution against over-reliance on automation.

The concern over artificial intelligence (AI) replacing human jobs has escalated as more companies embrace automation. According to Aaron Levie, the co-founder of Box, this trend is indicative of "AI psychosis." Levie argues that those making decisions about AI integration often lack a deep understanding of the roles they are automating.

In a recent example, ClickUp, an enterprise collaboration platform, cut 22% of its workforce due to the introduction of AI agents. This move has raised questions about whether such drastic measures truly benefit the company in the long run. Levie's warning highlights that while AI can streamline processes and enhance efficiency, it is crucial to consider the broader implications on job roles and employee well-being.

Tech layoffs are becoming increasingly common as companies prepare for potential economic downturns. Statistics show that tech layoffs in 2026 are already nearly matching all of 2025. This trend underscores a growing concern among industry experts: while AI can undoubtedly transform operations, over-reliance on automation without proper human oversight and understanding can lead to significant disruptions.

Companies must strike a balance between leveraging AI for its benefits and ensuring that the human touch remains integral to their success. As Levie suggests, it is essential to approach AI implementation with caution and a comprehensive understanding of how these technologies will impact various roles within an organization.