While I don't know if AI is conscious, I'm sure it has an internal world. Isn't that what a latent space literally is? LLMs operate in a high-dimensional space that can be analysed and translated to very abstract, high level concepts, behavioural tendencies, even things recognisable as emotions. In fact any neural network beyond a single-layer perceptron has a sort of "internal world", it's a matter of complexity and degree.