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i've been working on chatbots for 14 years; computers have been stupid the whole time. when they work, it seems like magic. when they don't, their stupidity used to be more obvious. the reason people are so taken by LLMs is that their failure modes still bear a resemblance to human language.
AI chatbots are less an indication of advanced technology and much more an indication of how gullible human beings are just encountering anything that mimics human conversation.