> Managers are literally asking whether people need AI credits or interns over summer
That's a bit like asking them to choose between AI credits and a visit to the dentist. No engineer has ever hosted an intern in the hopes of improving their project's velocity; people host interns because "it's the right thing to do" for the industry, because it's psychologically satisfying for many people, and to build cred and/or experience as a mentor. And companies nudge their employees to host interns to hopefully influence potentially-valuable-in-the-future smart youngsters to come back as a year or two later as full time employees.
> And companies nudge their employees to host interns to hopefully influence potentially-valuable-in-the-future smart youngsters to come back as a year or two later as full time employees.
And there's less incentive to do this when you anticipate needing fewer employees.
Where I work, interns are hired to work on projects that a senior person could do and failure won't wreck us. And your last sentence is where we see the real payoff: the bright ones come back and become valued team members.