Your rant is misplaced. It should be placed on hiring — candidates screening, on training — getting junior developers ready for their job, on engineering - code review and testing, and so on.
If anything, AI helps expose shortcomings of companies. The strong ones will fix them. The weak ones will languish.
Assuming you're right, I don't believe the effect will be at all dramatic. The vast majority of businesses are not in breakneck, life-or-death, do-or-die competition. The vast majority of business do quite a lot of languishing in a variety of areas, and yet they keep their clients and customers and even continue to grow despite not just languishing, but solid leaps backwards and even direct shots to the foot.
How do you propose that AI will do what you suggest, exposing shortcomings of companies? Right now, when it's being implemented, it's largely dictates from above with little but FOMO driving it, no cohesive direction to guide its use.
If anything, AI helps expose shortcomings of companies. The strong ones will fix them. The weak ones will languish.