I suspect it’s largely more the result of failing internal organization. Like, a detached from reality and ideologically motivated faction with in corporate leadership has seized control of the company and fired anyone who told them they were being idiots or opposed their initiatives. People are probably getting promoted or hired to management positions based on their ability to tell leadership what they want to hear rather than their ability to actually run things. Everyone lower down has internalized that telling the higher ups what’s going on will get them fired and only is telling them what they want to hear. Resources and people got diverted away from projects that the management doesn’t care about (have no potential to drive growth), and they’re just assuming that the “increase in productivity of AI” will make up the difference. Now everything is melting down and their core product is losing market share while the new products intended to drive growth are failing to see meaningful adoption. Heads will probably role, but it’s unlikely it will be the people who are causing the problem.

That’s what it looks like to me from the outside.