This wasn't a failure of AI. It was just a low-effort charade. If you want to put in the least amount of effort possible in such things, AI is there for you.

If they had put in any effort whatsoever they would've taken the first "draft" BS generated by the AI, made some minimal changes, then fed it back into the AI for further improvement.

Chat AIs are just that: Chat. You're supposed to go back and forth in conversation with the AI in order to get a good result. It appears the organizers of this event put together some terrible prompts and didn't even bother to spend an extra ten minutes refining things.

AI is a tool like any other. This pathetic event is a textbook case of how AI can't replace humans entirely (not yet, anyway). You still gotta put in some effort.