If the model works correctly on way more questions than there is room to store a giant list of recorded answers for, some kind of deduction of generalised rules must have taken place.
"there is room to represent recorded answers for" is doing a lot of work, of course; it might e.g. have invented compression mechanisms better than known ones instead.
It does system 1 thinking, it doesn't do system 2 thinking. That makes it really dumb, but can still answer a very wide range of questions it hasn't seen exact matches of since system 1 thinking can pattern match in complex ways.
> it might e.g. have invented compression mechanisms better than known ones instead.
You mean humans? Humans invented the transformer architecture, that is what compresses the human text to this form where semantics of text gets encoded instead of the raw words.
"there is room to represent recorded answers for" is doing a lot of work, of course; it might e.g. have invented compression mechanisms better than known ones instead.