The fact that there's an AI that can read a story and illustrate it on its own tells me it's closer than a lot of people think. That's suspiciously close to imagination.

Humans simulate a lot more than we generally want to believe. And we are constantly in a feedback loop, cross-referencing our view of ourselves to our view of the world -- making sure everything is the way it "should" be. I think that over the next 5-10 years studies will become uncomfortably revealing as to how machine-like we are, while increasingly advanced AI's begin to out-simulate us to the point that philosophically, we begin to panic to find the "us" in us.