AI will probably end up much like NFTs. It is mostly hype, there is good, there is bad but at the end of the hype the truly useful aspects of it remain. In the case of NFTs, I do not even know if there is any useful aspect. For AI, it will likely remain solid in areas where it can actually help. Have you ever interacted with an AI? Have you seen what it can do? Sometimes it can surprise you by how much it can do, other times it may be surprisingly stupid. I doubt it will work as good as a group of human minds could. It may help with precision, but even there you may see errors. Humans will stop rather quickly when an error occurs, but if an AI thinks there is no error, it continues to do what it should not do potentially causing way more damage and expenses than a group of employees could.
Further more, what even is AI? People barely even know what it is. Nowadays every thing that is programmed is called that way for marketing purposes.
you are right to point out the limitations. i have used AI a fair bit and it can be kind of impressive to use at times but it can also be somehow dumb although in a funny way or make mistakes humans will on a normal day notice very quickly. That's why i don’t see it as a full replacement for people on a long run! i think it is more like an assistant that still needs human oversight or monotoring and yes! this days the term AI gets annoyingly slapped on almost everything now. Because like half of the AI projects in crypto and some startups are just like basic automations that is dressed up with buzz words more like a loud noise without direction!! I think the real test will be which ones actually solve problems instead of just chasing the hype! especially from paid influencers.