It's even worse/better. It's corporate financial malpractice. At some point they will wake up after the AI psychosis dies down. That might take 1-2 more years. After that most companies will realize that AI is a tool, as OP said, and adjust budgets accordingly.

Importantly, "adjusting budgets" here is for most companies, you know the ones you have to fight to even get an IDE license, a euphemism for zeroing the budget.