If you assume they are not idiots and analyze the FOMO incentives via a little game-theory, it becomes clear why.
Assuming the competition has adopted AI, leadership can ignore it, or pursue it. If they adopt it, then they are level with the completion whether AI actually succeeds or fails - they get to keep their executive job.
If leadership ignores AI, and it actually delivers the productivity gains to the competition, they will be fired. If they ignore AI and it's a bust, they gain nothing.