Yes and no. Software can never get around the limits of physics. Big sensors will always be better than smaller sensors. I say this as a medium format digital shooter. But software makes tiny optics better. Software makes large optics better.
Not the best examples, but the current generation of diffraction compensation is pretty good
Canon's
https://snapshot.canon-asia.com/art...s-aberration-correctiona-close-up-look-part-1
Nikon's
https://nps.nikonimaging.com/technical_solutions/z7_z6_tips/small_apertures/
Fuji's
https://www.fujifilm.com/products/digital_cameras/x/fujifilm_x_t1/features/page_02.html
(and still used in the GFX100)
Capture One
https://learn.captureone.com/blog-posts/compensate-lost-sharpness-small-apertures/
I actually think the AI in iPhone (as an iPhone user) is both great for what it is, but also adds a high level of artificiality to many images. Over time it may get better, but this may be the equivalent of auto-tune or "loudness" equalization in hi-fi.
Getting back on topic, Nikon has some exceptional lenses, and some exceptional patents. The ergonomics of the Nikon professional line are field proven. Their diffractive optics have surpassed that of Canon's. Their camera brand/technology is a very good target for acquisition esp. if Nikon is under duress.