What ChatGPT tend to do is just repeating your prompt back to you.
It’s more often than not if you want to use it for any kind of story-telling you have to handhold it with the direction you want it to go instead of just letting it do whatever, since it really likes to railroad the story to the most generic direction possible.
You really have to inject that spark of madness into the prompt yourself to make it work.
I use it as a DM and it works rather well. Especially since it draws from already written source material.
The story seems to be behind a paywall, but I guess I don’t need a news article to tell me that what they have decided is AI is merely more and more code querying more and more data, and no real thinking whatsoever as a computer is not capable of making an actual decision other than what it is programmed to do. So spitting out crap isn’t shocking to me in any way.
A helpful YSK article: YSK How to bypass paywalls on news articles