I'm not one of them who says AI is not a thing. AI is certainly a thing but currently AI is in pilot phase and it has to establish itself as a profitable model. Market doesn't work long term on hope and hype, it needs numbers and they don't have it.
Every business is trying to integrate AI in their workflows but the cost of integration they are incurring is way less than the cost of production so, AI labs aren't getting enough revenue compared to production cost.
This is all happening because hyperscalers are spending capex without significant ROI, which has created temporary gap in supply and demand side and they are bearing that gap with their own money. This is unsustainable for a long. When they will reduce the capex, supply side which is seeing a boom will come to its actual scale.
When AI labs will start passing on the actual production cost to the businesses. Then we could see the businesses differentiating themselves who will be actually getting profit from the AI and who won't.
We even haven't saw the players who will actually benefit from the AI yet. Only the speciality businesses who has need of AI and could bear the production cost of AI will do it.
For other normal businesses if the production cost with the AI more than the human cost being replaced by it. They will simply have to stop using AI or figure out the way to get the maximum output with small scale integration.
Obviously biggest fall we will see in the market is with the hardware companies from the supply side when difference between supply and demand stabilizes.
Hopefully market will learn something from this process and differentiate the businesses who actually need AI and from the businesses who are running profitably without it and stop bashing the later.