Box Founder Warns of ‘AI Psychosis’ as ClickUp Slashes 22% of Workforce for AI Agents

Box Inc. (BOX) founder Aaron Levie warned of “AI psychosis” on May 29, 2026, as companies aggressively replace workers with artificial intelligence. Productivity platform ClickUp Inc. cut 22% of its jobs for AI agents in May, while tech-sector layoffs in 2026 already nearly match the total for all of 2025. DuckDuckGo reported a surge in installations from users seeking to escape Google’s (GOOGL) forced integration of AI into search results. Levie’s comments came during the TechCrunch *Equity* podcast, where hosts examined the widening gap between corporate AI enthusiasm and consumer resistance. They also highlighted three upcoming deals and Waymo’s latest robotaxi deployment. The developments illustrate a growing friction: businesses pursue cost savings through automation, yet encounter rising backlash from customers and workers skeptical of AI’s role.