Comment by solatic

I don't think this is actually anything new. In large-enough companies, even before AI, it was and is quite common for executives to lose touch with base reality. I don't think anyone is under any delusion that people like Mark Zuckerberg intimately know the entirety of their corporate codebases. Everything is filtered through layers and layers of middle management whose summaries, cherry-picked statistics, and perpetually up-and-to-the-right graphs make it difficult to have an objectively informed opinion. Companies would, are, and will have mass layoffs that unintentionally (or, intentionally but with indifference to the consequences) fire key engineers whose loss results in "familiarity debt" within the systems those engineers owned.

Calling this "psychosis" is maybe a neologism but it's apt in perspective.

All that's actually new with "AI psychosis" is an acceleration of that phenomenon. The agents will summarize status faster than any middle manager. Claude will happily draw you any "up-and-to-the-right" graph you please, with the most common contemporary examples being "tokens burned" and "lines of code written". And vibe coding doesn't even require paying the cost of a mass layoff to get the "familiarity debt".

There have always been both good and bad engineering leaders. No tool will magically make a bad leader into a good leader overnight. There is nothing new under the sun.