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I agree. "AI" is essentially a better algo not an artificial intelligence. Would be so much easier to talk about this topic with non-technical people if wasn't called artificial intelligence.
The primary issue I see with AI replacing search is you are placing even more trust in the tool/company than with a search engine. You have no clue where the answer is coming from. The more magic it seems to more faith people put in it. When I start thinking about it to much I get pretty dark on the future for most people.