I don't think using AI to write code is AI psychosis or bad at all, but if you just prompt the AI and believe what it tell you then you have AI psychosis. You see this a lot with financial people and VC on twitter. They literally post screenshots of ChatGPT as their thinking and reasoning about the topic instead of just doing a little bit of thinking themselves.
These things are dog shit when it comes to ideas, thinking, or providing advice because they are pattern matchers they are just going to give you the pattern they see. Most people see this if you just try to talk to it about an idea. They often just spit out the most generic dog shit.
This however it pretty useful for certain tasks were pattern matching is actually beneficial like writing code, but again you just can't let it do the thinking and decision making.