TECH CEOS GRAPPLE WITH 'AI PSYCHOSIS,' EXPERTS SAY

Levie's characterization points to a growing gap between AI hype and measurable business outcomes. Tech executives have embraced artificial intelligence as transformative technology, often citing dramatic productivity improvements and ROI projections that lack rigorous validation. The phenomenon reflects broader industry dynamics: venture-backed pressure to identify the next growth driver, competition to appear cutting-edge, and genuine uncertainty about AI's actual capabilities versus speculative potential. When leaders operate from a position of insufficient evidence, confirmation bias can take hold—each positive signal reinforces belief while contradicting data gets dismissed. The term "psychosis" underscores the disconnect between perception and reality. CEOs may be doubling down on AI investments and narratives despite inconsistent results, driven by competitive anxiety rather than empirical support. Levie's candid observation suggests even experienced executives recognize the problem, raising questions about how tech leadership can reset expectations and ground AI strategy in measurable outcomes rather than conviction.