It is already happening.

The distractions is that you only see the AI companies which have been blitz scaling, dumping unlimited amounts of money into orders and plans without any revenue plans for the other side. This move only pays off if they can essentially buy the entire market and lock out any competition (and then the rent-seeking enshittification will being). The long-term prospects of these companies is shaky at best, but that doesn't matter to the people currently dumping funding into them... they're going to sell everything at the IPO and leave some other suckers with the bag.

Because of this, there are many many times the amount of advertising and promotional hype than is justified by the actual progress in the field.

Everyone is familiar with this. If someone says AI, do you think of ChatGPT or an LLM? That's because you've been affected by this hype wave that is being intentionally propagated in order to drive valuations for AI companies who are looking to hit an IPO so all of the early investors can get out quick before the bubble bursts (It's like a crypto rugpull, except it is using the stock market instead of a meme coin).

'Actual' AI. By which I mean machine learning, including neural networks, has made huge progress in a lot of fields following the discovery of the Transformer model (the T in GPT). The, very real and impressive, improvements that have been gained are not flashy, they do not make for immediate next-quarter profits and are mostly public discoveries coming out of academia so they benefit everyone which makes them worthless to the people trying to horde emerging technology in order to push this bubble/rugpull.

Your life will be WAY more affected by the slow and incremental work being done in the field of robotics than having a slightly more personable chatbot. Your life or the lives of people you love will be saved by the advances in protein folding which allow rapid development of new treatments which can be customized to the individual. Cancer therapies that are optimized for the exact mutations in the patient's cancer cells or customized medicine aimed at reducing side effects or harmful interactions.