Well, actually "understanding" means that I say something, and you understand what I'm telling you.
I said: "I don't expect GPT to create new and creative things", and I said: "you do not need be afraid of this pseudo-intelligence".
What I intended to say was that in my opinion GPT is very restricted and limited in it's skills, and that it's not able to replace humans/programmers.
From your answer I can tell that you exactly understood what I was saying, and I also understand that your opinion about GPT's skills differs from mine.
So maybe we can agree that this is basically what people mean when they say "understand": to get the meaning of content and to be able to see (some) of it's implications.
Would I tell the very same thing to GPT, it would not "understand" me. It just isn't able to "get the meaning of content" and it is in no way able to see any implications (or anything).
What it actually does is this: it takes my words (a series of characters), then it parses it and generates a series of codes, then it looks up those codes in it's "tables", and based on the results found, it concatenates words and builds sentences according to some algorithms. The "tables" are built by scanning the internet and maybe other sources of knowledge, and condensing all that in some way, using statistics and weights and categories. (Well, very simplified, but it's just that.)
The difference is that you as a human "know" what we are talking about while GPT knows *nothing*, it understands *nothing*, it just puts words together, nothing more than that. It does this astonishingly well, but it has no idea about what it does, it's just a computer algorithm putting words together. It has no idea if the outcome is true or wrong. It just puts words together based on statistics, the result can be some true fact, it can also be some "fake news". It's just words in sentences according to some statistics and rules.
Also, this is the one and only thing this LLM can do. For each new purpose, a new model needs to be built and trained.
What a huge difference to a human like you or any other one on this forum! Just one brain, but lots of things we can do!
What actually really impresses me are those "AI" generated images and pictures.