I agree, "AI" is being pushed beyond reason, in an attempt to make it look like what it's not, or at least not yet. And yes, people do act irrationally due to that, see all that tkenmaxxing and layoffs. I don't think it will last in this inebriated state forever.
But it's worth noting that there's a new substance enabled by AI, the "slop", that is flushing violently into our world right now. Pretending it's not there, and that we won't see more of it, is perilous.