Problems the AI industry is not addressing adequately

Right. It worked for social media monetization.

"... hallucinations ..."

The elephant in the room. Until that problem is solved. AI systems can't be trusted to do anything on their own. The solution the AI industry has settled on is to make hallucinations an externality, like pollution. They're fine as long as someone else pays for the mistakes.

LLMs have a similar problem to Level 2-3 self-driving cars. They sort of do the right thing, but a human has to be poised to quickly take over at all times. It took Waymo a decade to get over that hump and reach level 4, but they did it.

AI system can be trusted to do most of the things on their own. You can't trust them for actions with irreversible consequences, but everything else is ok.

I can use them to write documents, code, create diagrams, designs etc. I just need to verify the result, but that's 10% of the actual work. I would say that 90% of modern day office work can be done with the help of AI.