There is a difference between being unable to tell if something is true or false and bring unable to tell if something is real or not.

Eveyone has things that they don't know the answer to. There are also plenty of things that an individual is wrong about. There is a fundimental differsnce between being wrong about something and being delusional.

>AI has become a layer between them and reality that has absolutely sabotaged their ability to know what is real.

You could say much the same about adgenda driven media coverage on any given topic. That can lead a rational person to believe untrue things. The distinction is that, given that perspective, it is reasonable to believe those untrue things.

If you decade everyone who firmly believes untrue things to be psychotic you would have to apply that to everyone who doesn't share your religious views.

There probably are a non-zero number of people in the world who are afflicted with real-live AI psychosis.

For everyone else, that term is being applied with disingenuous levels of incompetence.