If AI were really intelligent and thinking, it ought to be able to be trained on its own output. That's the exact same thing we do. We know that doesn't work.

The obvious answer is the intelligence and structure is located in the data itself. Embeddings and LLMs have given us new tools to manipulate language and are very powerful but should be thought of more as a fancy retrieval system than a real, thinking and introspective intelligence.

Models don't have the ability to train themselves, they can't learn anything new once trained, have no ability of introspection. Most importantly, they don't do anything on their own. They have no wants or desires, and can only do anything meaningful when prompted by a human to do so. It's not like I can spin up an AI and have it figure out what it needs to do on its own or tell me what it wants to do, because it has no wants. The hallmark of intelligence is figuring out what one wants and how to accomplish one's goals without any direction.

Every human and animal that has any kind of intelligence has all the qualities above and more, and removing any of them would cause serious defects in the behavior of that organism. Which makes it preposterous to draw any comparisons when its so obvious that so much is still missing.