They are useful for certain tasks, but have no inherent intelligence.
There is also no guarantee that they will improve, as can be seen by ChatGPT5 doing worse than ChatGPT4 by some metrics.
Increasing an AI's training data and model size does not automatically eliminate hallucinations, and can sometimes worsen them, and can also make the errors and hallucinations it makes both more confident and more complex.
Overstating their abilities just continues the hype train.