AI, Actually ExplainedLesson 8 of 92

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AI, Actually Explained

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Module 1 · What this word actually names

Does it understand anything? The honest answer

9 min read

The question people actually want answered

Every beginner arrives with this one, usually within the first hour, and it deserves a straight answer rather than a deflection. The straight answer is: nobody knows, the experts disagree, and the disagreement is partly about the word.

That is not a dodge. It is the state of the field in 2026, and anybody who tells you it is settled (in either direction) is telling you about their opinions.

What follows is the shape of the argument, so you can follow it rather than pick a side.

The case that it is only pattern

The best-known version is the “stochastic parrot” argument, from a 2021 paper by Emily Bender, Timnit Gebru and colleagues. The claim: a language model is a system for stitching together sequences of language it has observed, according to probability, without any reference to meaning. It has never seen a dog, never been hungry, never had a purpose. Whatever it produces about the world is an artefact of how people write about the world.

The evidence offered is the failures. A system that understood would not confidently invent a court case that does not exist. It would not lose track of a simple physical situation four sentences in. It would not answer a puzzle correctly and then get the same puzzle wrong when a number is changed, which is what happens: change the digits in a maths word problem and accuracy drops measurably, which suggests the pattern was matched rather than the problem solved.

The case that something more is going on

The counter-argument is that the parrot picture predicts things that turn out to be false.

A model that only recombined seen text should fail on new combinations. Models routinely handle them: a limerick about a specific plumbing fault in the style of a legal notice has never been written before.

More pointedly, researchers have gone looking inside. In one much-cited study, a model was trained purely on move sequences from the board game Othello, with no picture of a board anywhere in the data. Probing its internal activity revealed a representation of the board state, and altering that representation changed the model’s next move in the way you would predict if it were using an internal board. Whatever that is, it is not a lookup table of sequences.

Other work has found internal features that track things such as a text’s language, its truth or falsity, or a geographic location, in ways that are used by the model’s output rather than incidental.

Why the question is hard to settle

Because we have no test.

Every behavioural test proposed has been passed by systems that most people do not think understand anything, or is failed by people we know do. The Turing test fell decades ago to programs nobody claimed were intelligent. Exams get passed by models that then fail a rephrased question. “Understanding” in humans is not measured directly either; we infer it, from an assumption of similarity that does not transfer to a machine.

Underneath sits a genuine philosophical dispute about whether meaning can exist in a system with no contact with the world: an argument older than computing and no closer to resolution.

What to do instead

You do not have to settle it, and here is the good news: the practical question is different and answerable.

Does it fail in the ways something that understood would fail?

A person who has understood a document may misremember a detail, but will not invent a page number and a paragraph that were never in it. A person who has understood an argument may disagree with you, but will not reverse position because you sounded annoyed. A person who has understood a sum may make an error, but the error will usually be near-miss rather than a fluent, well-formatted answer with a wrong number in the middle.

Models make the second kind of error routinely. That does not prove the parrot case, but it is the practical signature to watch for, and it tells you where to check.

The summary

Hold two things at once. The systems clearly do something more structured than word association: the internal-representation work makes the pure-parrot description hard to defend. And they clearly lack something a person has: the failures are not the failures of a mind that has understood.

Anyone selling you certainty in either direction is selling. The useful stance is to treat “does it understand” as unresolved, and to make your decisions from observed failure patterns, which are much better documented than the metaphysics.

Check your understanding

Why does the Othello study make the strict “stochastic parrot” description harder to defend?

Pick the one you would defend. Your answer stays private.

Next lesson · 8 minFive words that hide more than they say

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How to cite: Addaly (2026) ‘Does it understand anything? The honest answer’, in AI, Actually Explained. Edited by M. Mun. Addaly. Available at: https://addaly.com/learn/ai-actually-explained/pattern-or-understanding (Accessed: 13 October 2026).