Sure, it will improve, but I think a lot of people think "Hey, it almost looks human quality now! Just a bit more tweaking and it will be human quality or better!". But a more likely case is that the relatively simple statistical modeling tools (which are very different from how our brains work, not that we fully understand how our brains work) that chatGPT uses have a limit to how well they work and they will hit a plateau (and are probably near it now). I'm not one of those people who believe strong AI is impossible, but I have a feeling that strong AI will take more than that just manipulating a text corpus.
>>jhbadg+(OP)
I'd be surprised if it did only take text (or even language in general), but if it does only need that, then given how few parameters even big GPT-3 models have compared to humans, it will strongly imply that PETA was right all along.