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Box CEO warns CEOs risk “AI psychosis”

AIMay 27, 2026 at 09:30 PM

TLDR: Box CEO Aaron Levie says CEOs can fall into “AI psychosis” because they lack exposure to the last mile of trial and error behind enterprise AI. He argues leaders should use AI heavily to grasp real agent work and governance.

Key Takeaways:

  • Levie challenges the CEO distance from operations, where most AI value comes after prototypes meet messy customer environments.
  • He links “AI psychosis” to inflated beliefs from polished chatbot outputs and says agents need 10 or 20 downstream steps for results.
  • His push for CEOs to use AI aims to close the gap between AI promise and the governance, cost, and long tail work that determines adoption.
Buzzy

Levie is basically saying the problem is not intelligence, it is commuting. If you never walk the last mile where systems break, you will trust the happy path.

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