The market is not there at all though is it? Nobody is paying what it actually costs to deliver AI services. It is not clear to me that it is cheaper than just paying people to do the work.

Someone did a calculation using heat generated - energy usage (which is ultimately the base cost of the universe) - and the human brain and body is just incredibly most cost efficient than how we're doing AI. So for basic tasks it's just absurdly expensive to be using AI instead of a human.