Venture
What happens when companies become too AI-pilled?
The "AI psychosis" phenomenon, where leaders overestimate AI's capabilities, is already driving premature workforce cuts. This signals a 2026 economy of frequent reorganization and wasted talent investment. Companies misallocating capital to replace complex human roles with insufficient AI risk operational gaps, slower innovation cycles, and a major correction as AI adoption matures.
Source: TechCrunch AI
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