PMax isn't bad per se - the real issue is people jump in before they've got proper controls in place. The reach across Google's inventory is genuinely massive, and the automation can sniff out conversions you'd never spot manually. Works a treat for e-commerce brands with a solid product feed, and you barely have to touch it.
But the trade-off is brutal. You get almost no visibility into where the budget actually goes. Audience, location, query data? Basically a black box. If your tracking or feed quality is shaky, it'll burn money fast. Google loves to over-expand targeting, so you end up with branded traffic inflating your results, remarketing carrying the load, and low-quality Display or YouTube views mixed in. You can't even see the search terms that triggered it.
That's why most experienced advertisers I know still run standard Shopping and Search campaigns alongside it, keeping branded and non-branded separate. PMax only really works well when your conversion tracking is rock solid, you've got historical data to feed it, the product feed is clean, and the account structure is mature.
On a brand new account with hardly any conversion data and weak creatives? It's a fast track to wasting money. So no, the AI isn't the enemy. The problem is automation without clean data and strategic control - that's how you end up with a very expensive lesson.