No, but it's absolutely burning through huge amounts of power and water to churn out garbage. Can't bike to the store if it's 130 degrees due to unrestrained climate change.
Less, 'we're using AI wrong', more, 'is AI even worth it?'.
In it's current iteration and implementation, yes. This iteration doesn't have people's interest at heart and saying otherwise is dishonest. All it is going to do is continue with the status quo, continue isolating people, and set the infrastructure for mega corp agricultural stores like how Amazon does it.