Aren't the companies who say they're doing this actually selling these capabilities to
others? So it's in their interest to pretend to be able to do more / better than what they actually can do. Especially when the clients have little capability to verify what actually happens. So no, their saying "we can do it" doesn't actually mean that they can.
As a user who doesn't have a horse in this race (I work for a "captive clients" company, so ads don't help much, nor do we sell any ads), what I notice is that ads I'm served are absolutely absurd. It's either Google Maps trying to sell me some hotel 50 meters from my home (I live alone, so I fail to see any reason why I'd go for that), or Instagram which somehow figured I'd be interested in buying bras for pregnant women (I'm a male, and I'm single).
More recently, Instagram tries to sell me Range Rovers. Where I live, there's a tax on "heavy vehicles", traffic is absolutely crazy, and we have usable public transit (which I use – while scrolling Instagram). Buying a big-ass car wouldn't help me in any conceivable way, and would be an all-round nuisance.
What leaves me flabbergasted, is that my only interactions with Instagram are around photography. I only follow photographers, who shoot landscapes and similar, I always leave the app when I'm presented with naked girls or other "reels'. So I could maybe, possibly, be convinced to buy some new camera or photo gear. Guess what I never see advertised on Instagram?