Let's keep aside the hype. Let's define more advanced AI. With current architectures, this basically means better copying machines(don't mean this in a bad way and don't want a debate on this. This is just my opinion based on my usage). Basically everything in the Internet has been crammed into the weights and the companies are finding it hard to do two things:
1. Find more data.
2. Make the weights capture the data and reproduce.
In that sense we have reached a limit. So in my opinion we can do a couple of things.
1. App developers can understand the limits and build within the limits.
2. Researchers can take insights from these large models and build better AI systems with new architectures. It's ok to say transformers have reached a limit.