Hi Idabel, thank you for your read and happy to know you find it valuable! Yes, you're correct, the AI we have today is operating based on datasets.

How it works behind the scene: Let's say you ask an image of a cat from the AI, the AI is going to go through thousands and thousands of images in the dataset that represent "a cat". Then, it creates a brand new image of "a cat" based on what it has learned. That's actually also quite similar to how we humans learn and eventually create. Hope that is clear :)