Because very few people actually understand what "AI" is or what it does. Particularly CEOs, who are usually clueless about what exactly they are managing. AI bros (starting from the top) are just very charismatic snakeoil salesmen who present AI like it's a magic wand that will solve every problem.

People buy into the bullshit, then keep investing into traininng sessions and custom AIs, hoping that something will stick, because that's how a scam works. Victims keep investing not just because of the sunk cost fallacy, but also because they can't mentally accept they were wrong.