AI has zero understanding of reality. It just regurgitates what it is told from training. There is no feedback loop to learn nor any consequence to the reasoned results.

Us human hallucinate, daily in fact. Example for people that have never had long hair.

1) Grow your hair long.

2) Your peripheral vision will start to be consumed by your hair.

3) Your hair will fall and sway causing your brain to think in flight / fight mode and you will turn your head to see.

4) Turning and looking causes feedback to acknowledge it was an hallucination.

5) Your brain now restricts the flight / fight mode because it was trained with continual feedback that it was just the wind blowing it or your head's juxtaposition that caused it.

Even though I told you about this and it is the first time growing your hair after, your brain still needs the real world experience to mitigate the hallucination.

AI has none of these abilities ...