A lot of this comes from the availability of cheap hype-driven capital. The way it's supposed to work is that AI lets you replace expensive human labor with cheap computers so that a job that might've cost $10 in wages instead costs $0.0001 in server time. The way it actually works is that you tell a bunch of investors that you've got an AI that reduces the cost of X by a factor of 10,000, they give you $100M in capital, and now you have 10,000x the amount of money available, so you can pay the original $10 in wages and worry about how to actually reduce the cost of X by 10,000 later, usually once it's clear that no more funding is forthcoming.

This is not really a healthy state for the economy, but seems to be how every technology wave happens. The real innovation will come when the cheap money dries up.