He explains that "cutting-edge AI capabilities" are now available for every company to buy for the price of standard software. But that instead of building a whole AI system, he says many firms are simply popping a chatbot interface on top of a non-AI product.

Well, yeah, because that's what LLMs can do.

We're not near the point where it's reasonable or intelligent to allow "AI" into the driver's seat. There are specific spaces where machine learning can be a useful tool to find patterns in data, and you would plug that model into normal tools. There are plenty of normal tools that can be made more user friendly with a well designed LLM based chatbot.

There are not a lot of spaces where you would want an ML model and and LLM interface, because there's just too much extra uncertainty when you aren't really sure what's being asked and you aren't really sure where the underlying patterns of the model come from. We're not anywhere close to "intelligence", and the people selling something claiming they're "doing real AI" are almost certainly misrepresenting themselves as much as anyone else.