Every dedicated camera is like this, more so if you shoot in raw.

There's also a lot of confusion around the processing here. The iPhone is mostly just taking multiple pictures and stacking them on top of each other to make up for the poor performance of the small hardware, denoising, and then applying a mask to subjects to lift shadows and adjust skin tones. This is the same kind of edit a photographer would do in Lightroom. It's not straight up AI generating content in the image.

Sadly Android phones are willing to pull cheap tricks to show better numbers or look better in some comparative youtube video so they pull this stuff.