Earlier quoted context omitted.
We have a name: Large Language Models, or "Generative" AI. It doesn't think, it doesn't reason, and it doesn't listen to instructions, but it does generate pretty good text!
[citation needed] People constantly assert that LLMs don't think in some magic way that humans do think, when we don't even have any idea how that works.
It doesn't matter anyway. The marquee sign reads "Artificial Intelligence" not "Artificial Human Being". As long as AI displays intelligent behavior, it's "intelligent" in the relevant context. There's no basis for demanding that the mechanism be the same as what humans do.
And of course it should go without saying that Artificial Intelligence exists on a continuum (just like human intelligence as far as that goes) and that we're not "there yet" as far as reaching the extreme high end of the continuum.