Honestly I think the same thing happened with self-driving cars ~10 years ago.
Larry Page and Google's "submarine" marketing convinced investors and CEOs of automakers and tech companies [1] that they were going to become obsolete, and that Google would be taking all that profit.
In 2016, GM acquired Cruise for $1 billion or so. It seems like the whole thing was cancelled in 2023, written off, and the CEO was let go
How much profit is Waymo making now? I'm pretty sure it's $0. And they've probably gone through hundreds of billions in funding
How's Tesla Autopilot doing? Larry also "negatively inspired" Elon to start OpenAI with other people
I think if investors/CEOs/automakers had known how it was going to turn out, and how much money they were going to lose 10 years later, they might not have jumped on the FOMO train
But it turns out that AI is a plausible "magic box" that you extrapolate all sorts of economic consequences from
(on the other hand, hype cycles aren't necessarily bad; they're probably necessary to get things done. But I also think this one is masking the fact that software is getting worse and more user hostile at the same time. Probably one of the best ways to increase AI adoption is to make the underlying software more user hostile.)
[1] I think even Apple did some kind of self-driving car thing at one point.