It really is a very visible demonstration of human faultiness.
A reasonable engineering approach would have been an interesting new technology with open discussion and assessment and expansion of exploration. Instead, we get hype cycles and hyperbole claims and lies primarily driven and publicized and repeated as market marketing and investor marketing and an industry driven by money and investment rather than technology and reasonably explorative and increasing usage.
It's sad and tragic. But not surprising. It's a consequence of human psyche, social constructs and market and society system structure.
When I hear my colleague does a presentation differently for internal towards developers with more reasonable AI takes and a different one for external which basically practically joins the AI hype instead of voicing boundaries, it's pretty sad that it can't be honest communication throughout and be understood as such.
I don't see it as an isolated fault of "corporate leadership" as in of development factories/teams. It's a broad issue, from the AI companies, press hype, industry hype, to then corporate and broader industry leadership eating it up and implementing and expecting marketing and hype claims.