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What happens when companies become too AI-pilled?

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Why This Matters

The increasing reliance on AI in the tech industry is leading to significant layoffs and user pushback, highlighting the risks of overestimating AI's capabilities. This trend underscores the importance of understanding AI's limitations and the potential consequences of its unchecked adoption for both companies and consumers.

Key Takeaways

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The people deciding that AI can replace your job are also the ones least likely to understand what your job truly involves, according to Box founder Aaron Levie, who pointed to this as an example of “AI psychosis.” Indeed, ClickUp recently cut 22% of its workforce for AI agents, tech layoffs in 2026 are already nearly matching all of 2025, and DuckDuckGo installs are climbing from users who want Google to stop forcing AI into search and just give them links.

Watch as TechCrunch’s Equity podcast hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into what happens when the AI-pilled and the AI-skeptical are both right at the same time, plus three deals worth knowing about and Waymo’s new robotaxi hitting the road.

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