AI Hysteria and the Reckoning Ahead

More than 2,000 “death by AI” legal claims are predicted by Gartner for this year alone. Not 200. Not 20. Over two thousand. This isn’t some distant future sci-fi scenario; this is 2026, and it speaks volumes about the current state of AI adoption: a chaotic, often ill-considered rush that I’m calling AI psychosis.

I see it every day. Companies, from startups to established players, are scrambling to slap “AI-powered” onto everything they do, often without a clear strategy or even a basic understanding of what they’re using. The U.S. alone saw 1,953 newly funded AI companies in 2025, a number ten times higher than the next closest country. That’s a lot of new firms, and frankly, a lot of potential for missteps.

The Illusion of Value

PwC’s 2026 AI Business Predictions are blunt: only a handful of companies are actually seeing significant value from AI right now. We’re talking about surging top-line growth and real valuation premiums. The rest? They’re likely just spending money, generating buzz, and probably creating more problems than they solve.

This isn’t to say AI lacks potential. Google’s Gemini helping you shop, NVIDIA’s advanced AI computing platform, Samsung expanding AI to millions of devices – these are real advancements from global leaders. But these are also companies with immense resources, deep expertise, and a long history of R&D. They aren’t just downloading a chatbot and calling it a day.

The Siren Song of AI for Everything

The allure of AI solving every business and management task, from marketing and sales to finding capital and managing people, is strong. Inc.com highlights this broad application. But chasing every shiny AI object without critical thought is where the psychosis sets in. It’s the belief that simply *having* AI makes you better, rather than understanding *how* to use it effectively and responsibly.

This widespread eagerness, coupled with a lack of critical evaluation, is a dangerous cocktail. The sheer volume of new AI firms suggests a gold rush mentality, where quantity often overshadows quality or even basic viability. How many of those nearly 2,000 new firms will still be around in a few years, let alone showing extraordinary value?

The Inevitable Fallout

Those 2,000 “death by AI” legal claims Gartner predicts aren’t just statistics; they represent real consequences. They’re likely a mix of things: AI making bad decisions, biased algorithms leading to discrimination, intellectual property issues, or perhaps even physical harm caused by poorly implemented systems. The upside, as Gartner puts it, is that these incidents will force a much-needed reckoning. Maybe then, companies will start to prioritize careful implementation, ethical considerations, and genuine understanding over simply jumping on the bandwagon.

My advice, as always, remains consistent: be skeptical. Don’t fall for the hype. Before you pour resources into a new AI solution, ask hard questions. What problem is it actually solving? Is it truly better than existing methods? What are the risks? What happens when it fails? Because in this current climate of AI psychosis, failure isn’t just a possibility; for many, it’s an inevitability.

🕒 Published: May 15, 2026