If they're in denial, perhaps they see something bigger at play? Governments are likely very interested in the massive-scale capacities for monitoring and analysis these tools enable. The public might not even matter to the suits in the end.
I think it is more likely they are just drinking their own koolaid (and their friends are too). They are paid to bring in investor dollars, which requires lofty promises.
I want to believe that, but I do wonder. The surveillance powers are immense for such technology. Forget the magical "SAI" stuff. It would also be a perfect cause for hyperscaling: total coverage.