I think Colin hasn't quite put his finger on what's not compelling about the output. He's interpreting it as a lack of "intuition", and claims that's what separates us from the machine, but that may just be what he was hoping to see in the first place.

Whats missing from its story telling is that it doesn't understand how conflict drives a narrative and what counts as resolving it. Often I find it tries to short circuit the process with "and then the main character learned to be happy with life. The end." No, not the end. In a decent story the characters are a vessel to elaborate on a wider idea. We don't care if it makes them happy or sad. Chat GPT seems excessively averse to any sort of "negativity". It tends to never write tragic endings or disagreeable characters.

It is missing something very concrete, not something nebulous like "intuition".