I don’t think its defacto psychotic to talk to essentially an extremely complex chatbot/autocomplete machine.

Yeah, it's actually very human thing to do, we are hardwired to see speech as a sign of intelligence and by extend sentience. What makes it psychotic in my opinion, is knowingly succumbing to that, willingly allowing it to break your brain.

The tech is neutral

I would say it isn't neutral anymore. They made it sound as human-like as possible, on purpose. I think it crosses the line.
I make an effort to learn the tools of the enemy, so sometimes I check it out. Last time I tried, after it generated the response, it said "let me know how it goes", and this is where it crosses from a tool to a weapon. There is no "me" there, it's not real, it was added there to break the natural human guards. There is no neutral version of that, it's evil and should be regulated into non-existence.