I could be wrong, but it feels like one issue is that AI seems to cater more as a signal to venture capital and the internals of the tech industry in a lot of these products, while consumers just want to know "what is this product going to actually do for me," and care less about whether it is implemented with the buzzword du jour.
Is anyone old enough to remember the switch from customer call centers having a human quickly answer to long long annoying phone menus because that friction, getting the customer to do some work or busy distraction, somehow saved costs for the company? No-one likes phone menus and immediately wants to escape them (then they disable pressing 0 for human) "AI" to me means the exact same thing company wants to cut costs…
They beat waiting for somebody to answer the phone just to tell you they are sending the call to somebody else and you'll have to explain everything again.
The sequences where you authenticate on the menu and no person is allowed to ask for authentication information makes sense too. I don't think anybody actually like it, but it is better than the alternative.
Nobody likes badly designed menus.