Brian Merchant's article 'AI really is smoke and mirrors' critiques the generative AI industry, expressing skepticism about the lofty promises made by tech executives. The article highlights the hype-driven nature of AI developments, the underwhelming performance of AI services, and compares modern AI's situation with historical illusions created by 'smoke and mirrors'. It discusses the industry's challenges, such as overly optimistic valuations and the reality of AI's capabilities, suggesting that generative AI could face a moment of reckoning once the facade of its potential wears off.