They understand a heck of a lot more than they did. We’ve gone from “understands how to form a coherent sentence, mostly” to “understands enough about the world to generate a 20 minute infotainment video that you wouldn’t pick as AI unless you’re looking for the current tells” in, what, 5 years?
It’s worth pondering what the world would be like if current AI methods don’t hit a glass ceiling, and get to the point where they can legitimately produce better, more creative, higher ‘nutritional value’ output than humans can. How do we spend our lives?