It's literally the name of the field of study. Chances are this uses the same thing as LLMs. Aka a neutral network, which are some of the oldest AIs around.
It refers to anything that simulates intelligence. They are using the correct word. People just misunderstand it.
The problem is that it refers to so many and constantly changing things that it doesn't refer to anything specific in the end. You can replace the word "AI" in any sentence with the word "magic" and it basically says the same thing...