The tech industry is experiencing a wave of layoffs, with many companies citing AI as a reason for cutting jobs. Some argue that tech CEOs are suffering from 'AI psychosis', overestimating the capabilities of AI and underestimating the work required to implement it. Box founder Aaron Levie suggests that CEOs are prone to this due to their distance from the actual work involved in generating value with AI. Research has shown that AI adoption does not necessarily lead to significant productivity gains.