Re: AI does not truly understand concepts such as addition, subtraction, or text summarization. Rather, it produces a mathematical estimate to satisfy our desired results.
If it can form internal representations of these concepts, and it definitely does in some cases, then it will predict text better. So I disagree with this sentence. It is motivated to internalize concepts, and it does. Bigger models will more so. See that video I linked for more on that, especially the unicorn drawing section