me_irl

paid to do it as in these companies get massive returns

Ai companies are famously revenue negative. Their value is entirely speculative and it's doubtful they'll get any real returns due to the plain physical economics of training and running these models. Money currently being made is pocket change by grifters (eg: Ai YouTube videos, low effort articles), and that will dry up as water finds its level because it's just so easy to do.

Looking at it from another perspective, the training of Ai and open sourcing of the initial models might be the greatest intellectual property transfer to the public in ~200 years. The strangle hold of Disney (and all litigious artist estates) on works that should be in the public domain has been strongly undermined.

That is like 30% of what a human will experience

Visual processing alone takes up about half of our brain. Between that and language you've covered most of it, I doubt Ai quality would be much improved by giving it taste or smell.

not restricted in their dataset to experiences and things that have already happened, and the experiences are not reflected in just words and images

Not sure what exactly you mean here. I can imagine a purple polka-dot parrot only because I have experienced those words in the context of color and pattern and animal. I can't imagine an ibcid kcajjd kpal outside of maybe vaguely attaching the concept of nonsense words to Dr Seuss. And I suppose an experience could be reflected in, say, a tantric massage but I'm not judging Gen Ai content on its ability to rub my genitals.

Everything I've read has said the opposite

Losing semantic coherence is exactly what I mean by hallucination. Even as you lose the ability to use input to derive a sane output, the resulting image could still be aesthetically pleasing or interesting. It could also be garbage, but the same problem happens with artists on hallucinogens.

And I agree, Ai is "bad" because of what terrible people think they can do with it and by extension the economic and environmental damage done by trying to apply it everywhere. But I think people losing sleep over individual pieces of Ai content and artistic purity are a bit silly.