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tech 15 May 2026

Mitchellh: I Strongly Believe There Are Entire Companies Now Under AI Psychosis

AI is as fascinating as it is concerning, but some companies appear to have crossed the line between innovation and obsession. Discover why AI might lead to 'corporate psychosis'.

Article inspired by the original source
Mitchellh – I strongly believe there are entire companies now under AI psychosis ↗ twitter.com

Introduction: AI, Between Fascination and Obsession

Artificial intelligence (AI) is undeniably one of the most revolutionary technologies of our time. It promises efficiency gains, disruptive innovations, and profound transformations across nearly every sector. However, as Mitchell Hashimoto, co-founder of HashiCorp, points out, some companies now appear to be suffering from what he calls "AI psychosis." But what does this really mean?

AI: A Double-Edged Sword

AI offers countless opportunities. According to a PwC study, AI could contribute up to $15.7 trillion to the global economy by 2030. Companies like Google, Amazon, and Tesla have already integrated AI into their processes to optimize operations and develop new products.

However, this fascination with AI can quickly turn into an obsession. Companies are investing heavily in AI without a clear strategy, driven by the fear of missing the next big technological leap. This phenomenon, described by Mitchellh as "AI psychosis," can have disastrous consequences.

Symptoms of AI Psychosis

Overinvestment Without Clear Returns

Many companies are spending millions on AI projects that fail to generate tangible value. According to Gartner, 85% of AI projects do not deliver the expected results. These disproportionate investments can lead to significant financial losses and divert resources from essential activities.

Obsession at the Expense of Innovation

Obsession with AI can also stifle innovation. When a company focuses exclusively on AI, it often neglects other technologies or strategies that might be more beneficial. For instance, a company might overlook robotic process automation (RPA) or workflow optimization, solutions that could yield immediate gains.

Toxic Corporate Culture

Obsession with AI can create a toxic corporate culture where employees feel pressured to "be AI" at all costs. This can lead to increased stress, high turnover, and decreased job satisfaction. According to a Stanford University study, an unhealthy corporate culture can reduce productivity by 20%.

How to Avoid AI Psychosis

Establish a Clear Strategy

Before investing in AI, companies need to define a clear strategy aligned with their business objectives. This involves understanding relevant use cases, assessing risks, and measuring outcomes. It is crucial not to get carried away by the hype.

Educate and Inform

Employees need training to understand what AI can and cannot do. Proper training can help adjust expectations and avoid unrealistic ambitions. According to LinkedIn, the demand for AI skills increased by 190% between 2015 and 2020, highlighting the importance of continuous training.

Continuous Evaluation and Adjustment

Companies must continuously evaluate the effectiveness of their AI initiatives. This includes analyzing outcomes, adjusting strategies, and redirecting efforts if necessary. A rigorous feedback system can prevent AI psychosis from taking root.

Conclusion: The Importance of Balance

AI is a powerful technology, but it must be used wisely. Companies must avoid falling into AI psychosis by maintaining a balance between innovation and pragmatism. As Mitchellh puts it, it is essential to keep one's feet on the ground and not sacrifice reason on the altar of technology.

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