As you hint at, the (more common) alternative to defining the world in advance is to rely on machine learning to figure things out (and possibly generate separate clusters for meanings that don't even map well to specific words but resolve the ambiguity). But even then you can run into problems. Even if your model can parse "cloud" correctly based on the context, good luck trying to parse a text about online storage of meteorological data.
The ontological approach described in the article doesn't really work all that well with real world data.
The raw ML approach works well enough but has a multitude of problems (e.g. learning biases, like "black" being a negative sentiment classifier when talking about people because of the texts the model was initially fed).
But given how hard it is to "solve" these problems, I'm not convinced ML alone will ever progress beyond the 80% "good enough" solution it is now, without being replaced with something completely different.
This is what makes me skeptical of all the tall tales about strong AI and "the singularity". While the specialised applications (e.g. deepfakes) are certainly impressive and a lot of the more generalised applications can go a long enough way to get a decent amount of funding despite unfixable flaws (e.g. sentiment analysis), getting from "here" to "there" seems to require more than just more incremental refinement.
Computer Linguistics courses have been teaching ontological "scientifically sound" approaches that yielded no real-world applications while Google had been eating their lunch with dumb statistical models. The dumb models have since become infinitely more intricate and improved from "barely usable" to "good enough" but seem to be inching ever closer to an insurmountable wall, whereas the "scientific" models still seem to be chasing their own tail describing spherical cows in a vacuum.