the prevailing argument in favor of investing in AI is its potential.

the prevailing argument against using AI is its current lack of potential.

Those things are inherently in tension, think of it as hiring a new employee straight out of undergrad. You are hiring them based largely on the employee they will become...with increasing expectations over time balanced against increasing variability in outcomes over time. However, if one year in that employee continues to suck at their current job, their long term potential doesn't really matter. Moreso, the long term potential is no longer credibly evidenced by the inability to progress at doing the current job.

This is an investment gone bad in the current state of things. It doesn't matter what might happen it matters what did. The investment was made based on the perception of astonishing velocity, and it seems that we may need to calibrate our spedometers.