Unlike "value demand," which is genuine demand arising from customer needs, failure demand is demand caused by failures such as errors, defects, inefficiencies, or poor service delivery. For example, if a service does not fulfill a customer's need properly, the customer must come back, creating more demand that is essentially avoidable. Failure demand leads to inefficiency, additional costs, and deteriorated customer and employee experiences.
So you're implying that ChatGPT and similar are so popular because of "errors, defects, inefficiencies, or poor service delivery", how does this make any sense in the context?