If AI were working as well as people claim, I'd expect the opposite - work getting delivered faster than the product managers can spec it. Bugs speeding right through the SDLC process. Jira boards sitting mostly empty.
As I'm not seeing that, I'm inclined to agree that this whole industry is falling into "industrious and stupid"
You were building one house (feature) per year. After finishing the house you found a few issues (bugs). You get your plumber, electrician..etc to fix each issue.
After two years, you start building 10 houses per year. When you finish, you find twice or x times as many issues (bugs) as before. Does that mean your workrate and productivity declined or that things are going downwards?
I'm not saying AI is the joker and solving everything. I think there is a bigger picture to consider whether AI is having a good or no impact on the company you are working for. Did you release more features than before, what about MRR, CSAT,..etc?