There's nothing magical about AI, but a forward pass through a transformer is a rather large stochastic computation. During this computation novel results are sometimes produced.

If you'd like an insight of what roughly can happen inside this computation, a short story from Karpathy is not the worst read - http://karpathy.github.io/2021/03/27/forward-pass/

sorry, what part of the article is this reply refuting?

You could be describing a library.

AI is just a stochastic parrot?

just wait.

they are gonna train them on data robots collect. Specifically videos of every day life!