>Now, AI here is capable of generating a circle with radius 0.15 and hence that circle is "not in the original dataset".
The fact that it can generate a circle with a radius of .15 rather than, say, some smushed transformation of an existing circle demonstrates that it properly decomposed the concept of circle into a radius and equidistance around a central point. This is plainly an example of generating novelty from iterating over variations of its conceptualization of circle. But this is no different than what people do. Nothing we generate is sui generis.
The fact that it can generate a circle with a radius of .15 rather than, say, some smushed transformation of an existing circle demonstrates that it properly decomposed the concept of circle into a radius and equidistance around a central point. This is plainly an example of generating novelty from iterating over variations of its conceptualization of circle. But this is no different than what people do. Nothing we generate is sui generis.