The reason why I said it sounded that way to me is that the 'intelligence' part in AI was never meant to imply some kind of superhuman ability. I highlighted the age of the field to point out precisely that judging any AI systems as humans would've been seen as outlandish and laughable for most of the field's existence. If computer vision is AI, then surely text generators can also be. It doesn't have to be a glamorous term, it's just the technical field.

Besides, if LLMs only recycled training data with no changes, they'd just be really bad search engines. Generative AI was created initially to improve training, not for human consumption - the fact that it did improve training shows that the result is greater than the sum of its parts. And since nowadays they're good enough to pass for conversation, you can even observe that on your own by asking a question that doesn't appear anywhere on the training dataset - if there's enough coverage on that topic otherwise, I've seen them give very reasonable answers.