"Landing projects for Set Studio has been extremely difficult, especially as we won’t work on product marketing for AI stuff, from a moral standpoint, but the vast majority of enquiries have been for exactly that"

The market is literally telling them what it wants and potential customers are asking them for work but they are declining it from "a moral standpoint"

and instead blaming "a combination of limping economies, tariffs, even more political instability and a severe cost of living crisis"

This is a failure of leadership at the company. Adapt or die, your bank account doesn't care about your moral redlines.