I think this disconnect is based on the ambiguity in the term "AI".

"AI" as tech - the models, how to train them, etc. Isn't going to go anywhere short of a Library-of-Alexandria-type catastrophe. We know how to do it and it's useful, so why would we forget?

However, "AI" as the thing that is enveloping our culture - the slop everywhere, the mandates to use it at work regardless of its usefulness, the constant talk about it being the future, the machine-dominated future that's been promised/threatened by the heads of the labs - we do still have a chance to put that onto the scrapheap.