A “real AI” should be able to do self improvement, and LLM’s can’t do that. Yes, they could make their own code neater, or take up less space, or add features, but they can’t do any of that without being instructed. A “real AI” could write a story on its own, but LLMs can’t, they can only do what they are asked. Yes, you could write the code to output text at random, but then the human is still the impetus for the action.

“Real AI” should be capable of independent thought, action, and desires.