The distinction is important because an intelligent being can actually be trusted to do the things they are trained to do. LLMs can't. The "hallucination" problem comes from these things just being probability engines, they don't actually know what they're saying. B follows A, they don't know why and they don't care and they can't care. That's why LLMs are not actually able to really replace workers, at best they're productivity software that can (maybe, I'm not convinced) make human workers more productive.
One distinction is that it requires work to actually get real useful knowledge out of these things. You can't just prompt it and then always expect the answer to be correct or useful, you have to double check everything because it might just make shit up.
The knowledgeably, the intelligence, still comes from the human user.