We use hands, recognize hands, some of us can draw or sculpt accurate representations of hands, we can talk about aspects of hands such as grip and fingerlength. All of these things encompass the idea and physical instance of "hand" in much more than just the artistic sense.
Also, we certainly know when we draw a hand poorly. Unless we are children, or have a brain condition. And if we are children or have a brain condition other adults wouldn't say that we have a good understanding of what a hand is.
Perhaps the AI knows it's drawing hands poorly. Perhaps it can't communicate this to us. Even so this should be in the code run somewhere.
> "while simultaneously saying the AI draws hands poorly because it doesn't understand hands?"
For two reasons:
1) The AI is just drawing. Even humans draw many things that they don't understand. If we draw something that we completely don't understand (such as through random scribbling) we don't even call it a representation. It's a fluke. I used to scribble and then trace images in my scribbling (if possible). Often I ended up tracing things that looked like a child's bad drawing of Donald Duck, but once, without having to trace particular lines at all, my scribbling was a perfect seeming of a rose flower (with some minor additional flourishes). I recognized the rose flower, but I certainly didn't set out to draw it.
2) I'm assuming the AI wasn't trained on medical and other information pertaining to a hand, the way humans are (even if the training isn't formal). It is trained on images. At best it is trained on images of discrete parts of the body, but this only allows it to understand the shape and relative position of each body part, at best. Not to understand the body part.
Ultimately it would take something looking at the code run to determine whether or not the AI brings an understanding of the concept of "hand" into the literal picture. If all it's bringing is #1 then it's not an understanding of "hand".