I don't think the GP meant to say that AI doesn't make products more useful.
I read it as them being frustrated with the over-use of "AI-powered X" -- when everything is AI powered, is anything AI powered? Favorite quote from Garry Tan: If everything is bold, nothing is bold!
"AI-powered" as a descriptor is incredibly overused to the point where it no longer elicits the same excitement that it used to 1-2 years ago.
I think everyone agrees that AI incorporated into a product can definitely make the product more useful. But let's stop describing our products as "AI-powered" and replace it with a descriptor that actually communicates the value the product is providing.
Marketing for AI products would be more successful IMO if they stop using the words "AI-powered" and "LLM" and "agents" and "tokens", etc... users are overwhelmed with AI overload. Throw away the buzz words and use messaging that communicates the specific value that the AI adds.
I think the days of consumers seeking out "AI" for the sake of AI is coming to an end. Consumers want to know what the AI will do for them. They don't care that it's AI-powered.