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"I have seen the output and it matches what I consider to be conversation"

Well yeah, it's been trained to produce output that would look like conversation.

it's not what i meant : you can have a full conversation and then at some point use "it" or "him" , and based on the rest of the sentence, it will understand what previous element of the conversation you were mentionning..

This requires at least "some" conceptualisation of the things you're talking about. It's not just statistics.

It does not require conceptualization, pretty sure the "understanding" of previous references comes from this: https://arxiv.org/abs/1706.03762

This is exactly statistics.

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