I imagine it could. Something for it to contend with though is that our published media, soap operas, reality tv, so and so, don’t really reflect what we humans are like in real life. They’re caricatures of us.
But instagram/tiktok has real data + you messages, people you know and talk to and listens to you 24/7. If they will be able to predict 1B of humans and social dynamics then I guess it’s enough of training data to basically simulate reality.
EDIT: it gives insane “soft” power so pretty sure NSA etc. are working on this
Imagine the power of 1,000,000 tiktok videos! That would really be simulated reality.