There have been a lot of recent changes to VS Code that feel like this: the Copilot pane has been refactored to take up more space and behave less like other composed panes in the window; the integrated terminal now does overly clever and brittle things to introduce suggestions in REPLs like Python’s. Those kinds of changes have pushed me more to Zed recently, which has all of the same AI features but without the user hostility.
The execs want to they're using+selling AI, the investors want to believe AI can theoretically fire all the workers/drop your fixed costs, and the middle managers need to justify that they're on it by myopically pushing out features that increase the AI adoption metric.
The rushed push of AI features obviously trains your users that your AI is useless crap that just gets in the way. If you're going to do it's, make it limited and high quality first.
I've released a number of AI fearures at work, but they're focused on being good at one specific thing.