Anyway, I've worked both in academia and industry. Industry is simply more practical and better at technology. In tech areas, academia desperately needs industry to provide the feedback they provide. Especially in AI areas. You are thinking of CEO's or salespeople or something, but the people that matter here are the engineers. And I'd place their assessment over that of grad students any day. If the engineers can't make it work, then yes there's a problem here. Doesn't always mean it can't work, but for most ideas it probably does.
By the way industry research labs certainly still exist. But long-term self-funded research has to compete with govt funding of research. Why throw your investor money at a high-risk idea when Stanford, MIT, and 100 other R1's are throwing taxpayer money at it? Otherwise industry labs end up just competing for govt gants ultimately. Meanwhile nowadays we see academia chasing short-term problems that industry leads in (and trying to patent them too).