Absolutely! Because asking n00b questions illustrates where your blind spots are. Fortunately for you, Stephen Wolfram wrote up a really nice explainer for what the fuck all these "AIs" are actually doing a couple years ago:

But before just shoving a massive bolus of words and going "STFU n00b" a few quick answers:

scanning my system for passwords

So the thing about AIs in general and this one in particular is "what is it trained on." "What is it trained on" is "some form of data". The AI itself doesn't scan shit - could the app that hosts it scan your phone for passwords? you damn betcha but that's not AI related, that's scam related.

The company that put it together is basically trying to recreate Renaissance Technologies with modern technology. Renaissance Technologies, you may remember, was what made Robert Mercer rich, applying Markov chains to high frequency training. Robert Mercer then skipped out on his taxes, got sued by the IRS, had his daughter hire Steve Bannon and Cambridge Mathematica to put Trump in the White House and here we are so... stealing your passwords is chump change for them, they're out to steal the economy.