No, you're right. It's absolutely a narcissists mirror.

The purpose of the AI is to stimulate specific human responses. It doesn't understand any other context, just input & output. How you deal with the AI, is how the AI deals with you. A narcissist will only find utopia, as the code executes a recursive loop of compliments.

AI won't be taking over anything, but it is both useful and dangerous for the purposes of interfering with communication and research (along with facilitating it). Just another stepping stone with technology.