It is similar to what humans do. The principal difference is that the AI tech we have (as of yet) can’t learn how to learn: Those systems come with pre-determined rules to learn, we come with pre-determined rules on how to learn how to learn.
And yes AIs abstract the knowledge they get fed. What they have trouble with is not forgetting how to play soccer when learning how to cook spaghetti as without the capacity to learn to learn they can’t vary encoding of information between topics and everything gets mushed together, new information blindly overwriting unrelated old information.