The Turing Test codified the very real fact that computer AI systems up till a few years ago couldn't hold a conversation (outside of special conversational tricks like Eliza and Cleverbot). Deep neural networks and the attention mechanism changed the situation; it's not a completely solved problem, but the improvement is undeniably dramatic. It's now possible to treat chatbots as a rudimentary research assistant, for example.
It's just something we have to take in stride, like computers becoming capable of playing Chess or Go. There is no need to get hung up on the word "intelligence".
I feel like Musk doesn't have much to work with in UK politics. In the US and continental Europe, his pattern has been to find the "barbarians at the gates" and use his resources to help open up the gates. In the UK, the barbarians kinda already sacked the city a while ago with Brexit. There's not much left that Musk can do to mix things up.