Yeah, this is the thing that always bothers me. Due to the very nature of them being large language models, they can generate convincing language. Also image "ai" can generate convincing images. Calling it AI is both a PR move for branding, and an attempt to conceal the fact that it's all just regurgitating bits of stolen copywritten content.
Everyone talks about AI "getting smarter", but by the very nature of how these types of algorithms work, they can't "get smarter". Yes, you can make them work better, but they will still only be either interpolating or extrapolating from the training set.