When the iPhone came out, nearly everyone I knew dumped hundreds of dollars to get one (or a droid) within 2 years.
Have you recently spoken with the younger generation still in school?
I doubt you find many there who just "have barely engaged with it". It is just too useful for all the generic school stuff, homework, assignments, etc.
Between your comments, and the report above, I suspect you, and most people you know, aren't students.
Point being, when smart phones came out it there was anticipation of what it might be, sort of like a game console. ChatGPT et al was sort of sudden, and the use case is pretty one dimensional, and for average people, less exciting. It is basically a work-slop emitter, and _most people I know_ seem to agree with that.
most people I know spend $500+/month and use ai 8-10/hrs per day