If I had to guess, the mandate to cram AI in everywhere came down from Nadella and the executive level with each level of management having KPIs for AI in their product all the way down. Much like the "everything has to be .NET even though nobody has any idea what .NET means" when it was first introduced and every MS product suddenly sprouted .NET at the end of their names. When executive management gives stupid non-negotiable orders, they get stupid results.

AI is useful but these management type typically don’t know how to make it useful.