I'd say it's never been as good as Musk and Altman especially make it sound.
If you drill into the nuance of their proof points that their companies bother to share, it's generally a bit more clear that things aren't exactly 'asterisk free' even then. Most recently I read how one of them proudly proclaimed they were 100% manual code free, but for the task described they still had 200 developers, which is significantly more developers than I have traditionally seen. To get things vaguely working, you need to be relentless in providing a super comprehensive set of requirements and criteria that are impeccable at fully capturing what is needed and could reasonably go wrong. Also a fanatical amount of detail to audit how the solution was reached and correct missteps, like when it decides to delete a failing test case instead of fixing the correlated problem. The 'purist' approach is, in my opinion, worse for the sake of just signaling how 'AI-friendly' you are.
I can at least buy that from a pragmatic perspective, the codegen can accelerate things if used under a more balanced approach, being able to be in the code and grasp in detail where it might have gone wrong and correct it before it gets lost in a mess of garbage. It will do things that a human might skip that they shouldn't, like hooking various unlikely errors and providing a nicer treatment. It is often useful to get a general idea of a good choice of library to do something and how it fits in your code, though you still have to beware that it may invent details that would be nice and convenient, but are wrong.
The problem is that narrative is totally not what they need to justify the spend. They needed to take randos and prompt up things without full understanding. They needed AI codegen to be really valued on the same level as a full headcount. This trickles down to little folk like the team lead in my situation, where he thinks this is his only ticket to the 'big leagues' if he manages to drive a success story for 'AI native'. He doesn't understand any of it and his team doesn't understand any of it and so of course the AI can't bring what actually understanding the scenario would.
Even more rough for that guy: he imagines a world of slopping up code and then selling the result, without ever having unique skill or insight. Assuming that can work, then why would any company buy your slop instead of just slopping it up themselves?