The problem and what most people intuitively understand is that this compression is not enough. There is something more going on because people can come up with novel ideas/solutions and whats more important they can judge and figure out if the solution will work. So even if the core of the idea is “compressed” or “mixed” from past knowledge there is some other process going on that leads to the important part of invention-progress.
That is why people hate the term AI because it is just partial capability of “inteligence” or it might even be complete illusion of inteligence that is nowhere close what people would expect.