It's similar for Chess AI (and by that I mean Chess Engines that have been developed for decades, not LLMs) except that the engines will play extremely principled and cautious Chess, right up until it gets out of the book/theory territory and it calculates 20-30 moves into the future and determines that an incredibly unintuitive and bizarre move is the "best" position, but even the top grandmasters would likely never find that specific move that the engine determined was the best move you could make.
In some cases, you can tell when someone is cheating by seeing them make top engine moves that don't do anything or really advance the board state in a meaningful way the turn you make them because it forces the opponent to make one or more less optimal moves that the player could capitalize on, but humans are terrible and seeing these patterns because they are super analytical and require precise calculation. Also, asking them to explain why they made those moves is another way to catch them in the act - and a subject of a great deal of controversy in modern chess tournaments when some players give less than convincing answers when pressed on why they made certain moves in the game.
Au contraire, it actually does! The same way the last four or five economic crises were handled - massive government bailouts for the affected sector.
It'll soften the blow for the common people's 401ks so they don't completely revolt, but the c-suite execs will get their big payoff and the asset buyup (datacenters, hardware, etc) in the aftermath will transfer an unimaginable amount of wealth into the hands of yet fewer people and dramatically increase inequality.
It's a shitty solution, and one that is not viable long term, but since it has worked so many times in the past, I doubt the government is going to change up their winning strategy. Especially not with the current clown cadre at the helm.