> AI can much faster troubleshoot and resolve production issues than humans

Can, yes, with proper guardrails. The problem is that it seems like every team is learning this the hard way. It'd be great to have a magical robot that could magically solve all our problems without the risk of it wrecking everything. But most teams aren't there yet and to suggest that it's THE way to go without the nuances of "btw it could delete your prod db" is irresponsible at best.

It didn't delete the prod db on its own a human introduced such error, and if there were backups it could fix such a mistake.

There were backups. The AI deleted them.

When people talk about backups they typically mean located somewhere else. If one terraform command can take out the db and the backups then those backups aren't really separate. It's like using RAID as a backup. Sure it may help, but there are cases where you can lose everything.