Nailed it.
What's more interesting is that most day traders can't beat the market too. There are tons of studies that demonstrate that the absolute most of day traders lose their money, and there is very little chance to succeed. I guess it is very unlikely that AI can do better at day trading.
The long-term trends though - the "general direction" - are way less risky and far more easy to predict and take advantage of. That's where the use of AI is likely beneficial. I remember reading about a hedge fund founded by a math PhD. The fund uses machine learning to predict market trends, and AFAIK, it has been consistently beating the market for decades, and even Berkshire Hathaway hasn't ever achieved this much. I don't remember the name of the fund tho.