So from there people have less incentive to create the new data the system depends on in order to stay relevant. In a way, it could potentially eat itself to death, or become stuck in the past.
Good point.
I read somewhere that the data being used for some of these AI systems stopped about a year ago or so. Probably though, the paid for versions use up to date data.
For some systems yeah, it's old already. When it's tied to a search, it needs humans to constantly feed it. I can easily get today's news on Bing. But it doesn't make the events happen.
It doesn't "think" the same way a human can. And when a human takes what's already known and part of the database AI is using to "think", then publishes something based on that information, to AI and technically humanity, that's basically like you've burped and puked a bit up, then swallowed it. AI images, same thing really.