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For me, everything increasingly points to the fact that the main “innovation” here is the circumvention of copyright regulations. With possibly very erroneous results, but who cares?
In my experience, if some “innovation” makes no sense and yet is continuously hyped up by people who should absolutely know better, it is usually because it allows them to circumvent some law or regulation they don’t like. That was certainly true for cryptocurrencies and for a lot of complex financial products during the subprime crisis, and it appears to be true in this case again (this time, it’s copyright laws). If AI “rewords” existing content and adds fresh errors, the result is (supposedly) not copyrighted anymore (I guess) and can be used to sell more ads - mission accomplished.