AI Mania Is Eviscerating Global Decision-Making — Ludicity

Ludicity

AI Mania Is Eviscerating Global Decision-Making

Published on July 18, 2026

Note: This has been cross-posted to my company's blog, in case you think there is some use in sharing with someone in a format that looks more authoritative. Link here.

I strongly believe there are entire companies right now under heavy AI psychosis and it’s impossible to have rational conversations with it about them. I can’t name any specific people because they include personal friends I deeply respect, but I worry about how this plays out.

– Mitchell Hashimoto, of HashiCorp and Ghostty fame

Over the past year, I’ve run point on all of our company’s sales, led the technical components of all but two of our engagements, and over the lifetime of this blog have had something like 300 catchups with professionals from around the world. This has ranged from people on the ground in niche service industries to executives at Fortune 500 companies1. Because of this, I've had a front-row view to our collective institutions across both the private and public sector undergoing breath-taking mass psychosis. This essay is an attempt to describe the bizarre dynamics that are currently at play, as I am in the rare position where my wellbeing is not contingent on paying lip service to madness, and to reassure the people trying to survive amidst all of this that they are not crazy.

The reality is thus: the people in charge either have no plan, or see no path forwards other than keeping their heads down. Not at banks, not at hospitals, not in our government institutions. The world’s organisations have been captured by people in the throes of frothing excitement, and saner people who now live in a state of constant commingled fear and frustration.

I. None Of This Shit Works, At All

Reading this while working for a division that pivoted to provide interfaces for agentic workflows, only to discover that only ten users had ever touched the products we made for agents, only to pivot again to support for agentic workflows, which has a lot of competition because every company has to do something agentic now and there's only like four things you can do in that space, is bracing.

– An editor of this essay

Are companies actually seeing massive productivity gains from their AI adoption? Does any of this sordid affair make sense?

This should be an easy question, but it is surprisingly hard to get a straight answer to it. Executives that tell the press that their company has gone insane will quickly find themselves removed from their positions. Employees who are honest will find themselves fired in short-order, or “randomly” selected for a round of layoffs. In fact, it is in the interests of almost every actor in the space – boards, executives, employees, vendors, consultants – to obfuscate and misrepresent the success rate of AI projects. Many publicly traded companies are putting out announcements about their AI productivity gains when I know for a fact that the businesses have done nothing other than purchase Copilot licenses and declare victory.

Yet we need to know if these projects are panning out – if the total focus on AI as a core tenet of business strategy is succeeding at a reasonable rate, then a discussion about the relative risk and reward is warranted.

Unfortunately, we live in a dark timeline. All of the AI projects we have observed as a team are failing. Every single one – we have seen 0% success in a year and a half, not only amongst projects we have been asked to participate in2, but even within projects that we have observed in passing while doing totally unrelated work. Even if you grant that AI tooling accelerates specific workloads, the method and scale of the current investments is senseless. Frequently the failure is not related to AI itself, but rather that companies are terminally bad at running software projects effectively, and as I have remarked previously, AI projects are subject to all the failure modes of normal projects plus you can get everything right and then still fail because of the method's novelty. Very few companies are so good at shipping software that they can afford the extra risk profile.

Often enough, though, it’s an actual failure in what LLMs can accomplish. The most common version of this, being rolled out across businesses around the world, is the internally-facing chatbot, or for the more daring company, the customer-facing chatbot. The story is always the same. For the former, I’ve never seen substantial internal uptake from inside a business. Employees don’t use internal chatbots because companies tend to have low-quality documentation and an LLM is not psychic – it can only know things that have been written down and made accessible. For the latter customer-facing applications, I have rarely had a pleasant experience as a consumer, with perhaps the exception of live transcription during medical appointments – hardly something...