That’s a bit of a reductive view.

For example, even the people with the most negative view on AI don’t let candidates use AI during interviews.

You can disagree on the effectiveness of the tools but this fact alone suggests that they are quite useful, no?

There is a difference between being useful for sandboxed toy problems and being useful in production.

Not really. I'd rather find out very quickly that someone doesn't know a domain space rather than having to wade through plausible looking but bad answers to figure out the exact same thing.