Complete randomization is possible in Software. If creativity is just about choosing a new random thing and then evaluating if that thing is better or not than the previous instance, AIs then can be creative.

They just need to do billions of those randomizations in a second and pick one. Which is not hard.

They can even use their own hallucinations as a source for creativity.

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It's the evaluating part that is misleading. It will assess it through replica model, which is not optimal. Creativity is something even we as humans cannot comprehend fully. The right bright is abstract, there is no deductional approach, no chain of thought, no causal relationships.

I am not as optimistic as you about AI in this respect.

AI is good in structured approach that can be assessed through deductions and causation.

The AI can pay the meatballs in real world to do the evaluation. But it can replace those too...