True AI should be capable of comprehending problems and devising its own solutions, rather than merely generating statistically likely outputs. Until AI reaches that level of cognitive ability, its applications in the real world remain limited, and much of what we see today is largely hype.
Tokenization and embeddings merely help models predict the most probable next token, a process that is executed at scale using vast computational resources. This is not intelligence but large-scale probabilistic prediction. The terminology used in computer science, especially in recent years, can often be misleading.