But the AI still progressing at a rapid rate is also software.
It is progressing, yes, but it subsumed the productivity of humans.
Where before humans learned and built better tools, now you keep paying forever to get re-trained models. What makes it a regressive feedback loop is that the people who used to learn and push the frontier are now using AI to repackage others' work as their own. Eventually what will be left to train on but copies of copies of copies?
If your database gets bigger does the software get better too?