Well the idea is that all emerging ideas with broad appeal go through the Hype Cycle. I don’t know that AI is different or dangerous in that regard.
I can't think of a single example of an "AI" company I talked with who did not know that they were explicitly exaggerating their claims and capabilities for the express purpose of attracting funding and fueling the hype fire.
The solid tech startups I've seen are focused on the problem they are solving for customers rather than the tooling (AI).