A deep learning model can tell biological sex from retina pictures, but not even the best eye doctors can. You feed it a pile of images labeled "these are from men" and "these are from women," and it figures out the differences and applies that knowledge to pictures it's never seen before. As far as I know, we still don't know what exactly it's picking up on - or if it's even something a human could distinguish - but for an AI it's not a problem.

I think the term "AI" has just been a bit stained by all the people conflating it with GenAI. Yes, GenAI is AI, but the term AI covers all kinds of systems, and GenAI is just one subcategory.