This is partly because people, especially the people who make AI, conflate 'AI’s and 'LLM’s. The LLMs are basically dumb marketing gimmicks with, as far as I can tell, near-zero practical applications outside of getting people to talk about ‘AI’, however misleadingly. However, the actual AI tech has some potential applications. It’s a question of whether the trade-offs are worth it (and, as I said elsewhere, who will actually benefit, assuming it has any benefits).
The story behind it is nuts, too. Apparently Tim Berners-Lee (he who invented the Web) was at some kind of government reception and Gordon Brown asked him something like, ‘What could the government do to make better use of the web?’. Berners-Lee said, ‘Well, you could make all government data publicly available,’ expecting Brown to go, ‘Ha-ha, no,’ but he just went, ‘Yep, great idea’, and then did it.