It doesn't understand anything outside of the positive reinforcement it gets from randomly stringing words together correctly.
Now, if AI actually experienced positive reinforcement and learned from it, we are truly looking at intelligence, as well as the possibility of consciousness. There is no positive reinforcement in computers today. They do what they're programmed to do, the way they are programmed to do it, which includes learning algorithms. Computers and their programming experience no pleasure and they don't know when they have it right, only that it meets the correct parameters fed to it in their programming. Currently, if an AI program was never asked to perform a task, it wouldn't perform any tasks. It would just wait, no matter how much positive reinforcement it had previously received.
As an artist, I take my art, on occasion, to craft and art fairs where I display my drawings, paintings, and woodburnings (pyrography) to the public in a 10'x10' booth. There are a lot of artists that do this. Many of them post signs that say something like, "No pictures, please."
I don't put up such signs because I'm not selling pictures. If people just want a picture to hang on their wall or something like that, they can order a poster online, or shop at TJMax. I sell stories.
When a customer buys from me, they get an original, one of a kind, hand done, piece of me and my story. That can't be reproduced. That's why a Van Gogh original will sell for millions, while a poster of a Van Gogh will only cost you $14.99 on Amazon.
If, as an art student trying to develop a career, your prospects are in marketing or product design, you might have a serious concern for your job because of AI, but if you're trying to break into the highly competitive, and not so secure or lucrative world of high art, you will always have patrons. Right now, AI art is a novelty that fascinates buyers. But that will pale over time and people will want a different story to buy. They'll want something painted by an elephant, or a chimpanzee, or someone like me. Take all the pictures of my work you want. Show them to your friends, tell them where they can find me so they can take their own pictures. Maybe one of them will want an original WDG.
Writing is a little different than visual art. The story as art is what customers want. People don't usually care much about the unique, hand produced nature of the stories they choose to read. If another Star Trek novel came out and it satisfied that hunger for more Star Trek novels, people will buy and read it. But, if you are a creative person and writing feels like the right outlet to express that artist's desire, you'll write it yourself regardless, Hopefully, it's original (synthesis), and good, so that other people also like it and a publisher will pick it up.
The thesis, antithesis, synthesis process of creation is the commonly understood way to create original works of anything. Every creation came from somewhere. Every experience leaves an impression on the artist. Conscious of it or not, original ideas develop out of our past experiences.
-Will