To be clear, I am not making a statement as to whether AI reasons or not. Its just slippery to say something isn't or can't do X when we can't really define X. Perhaps if we can put it down as an outcome rather than an, in my opinion, currently impossible to accurately define characteristic of a thing.
Even in this discussion someone provided an example of coming up with board game rules. LLMs found all board game rules valid, because they looked and sounded like board game rules. Even when they were not.
In short, You can learn a subject, you can make a mental model of it, you can play with it, and you can rotate or infer new things about it.
LLMs are more analogous to actors, who have learnt a stupendous amount of lines, and know how those lines work.
They are, by definition, models of language.
IF you want a better version - GENAI needs to be able to generate working voxels of hands and 3D objects just from images.
In other words, we didn't put the "reasoning algorithm" in LLMs therefore they do not reason. But what is this reasoning algorithm that is a necessary condition for reasoning and how do you know LLMs parameters didn't converge on it in the process of pre-training?
Statistics has little relevance to LLM operation. The statistics of the training corpus imparts constraints on the converged circuit dynamics, but otherwise has no representation internally to the LLM.
I think they are circuit "approximators". In other words, a result of a glorified linear regression..