There are newer AI tools that can do text accurately. Usually it’s with text provided in the prompt though, so it’s arguably not AI generated, just AI placed.
The unreadable AI text you’re familiar with is done without the AI really knowing what text is, and they’re just making something that looks vaguely like it. It’s the same way they normally handle any kind of object or shape. Newer tools are built specifically for text, so it actually is readable and makes sense.