This is the earworm the leaders of these companies have allowed into their minds. Like Agent Mulder, they Want To Believe in this so badly...
If you assume they are not idiots and analyze the FOMO incentives via a little game-theory, it becomes clear why.
Assuming the competition has adopted AI, leadership can ignore it, or pursue it. If they adopt it, then they are level with the completion whether AI actually succeeds or fails - they get to keep their executive job.
If leadership ignores AI, and it actually delivers the productivity gains to the competition, they will be fired. If they ignore AI and it's a bust, they gain nothing.
The company does better than the money-burning competition, but the executives personally gain nothing; there are no bonuses just because the competition took a misstep.