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Does translation need actual AI?
No, but it's a hell of a lot easier to put huge language datasets into the machine learning blender and get a model out, instead of manually programming every conceivable linguistic construction.
Oh and it likely has to do speech-to-text first, another good fit for machine learning models.
Yes, as the semantic of words is context dependent.
Once again the buzzword "AI" is vague. It's likely a chip that runs a deep-learning-based model for translation. Deep learning has excellent results in translation
So not AI in the LLM like ChatGPT.
As a machine learning researcher who spends all my time with other researchers, we all hate the word "AI" used to describe LLMs also
AIs are way better at it.
Lets stay at LLM and not AI.