In this moment, the opposite is happening. Everything is getting called "AI", whether it uses LLMs to prompt LLMs about how to prompt LLMs, uses "conventional" machine learning, or just looks mysterious enough that they can expect the market to not ask questions.

I am reminded of "game AI", which for the most part has historically been just giant decision trees, encoded one way or another, because if you hook up any sort of real AI to a game entity or collection of game entities that does any sort of learning or training, even simple 1980s-era reinforcement learning, it turns out the game entities will roflstomp the human players, and the human players aren't interested in paying for that experience. We've been calling those collections of if statements and for loops "AI" for a long time, though, because who wants to hear about how deliberately stupid their opponents are?