I think you're conflating two separate issues:

1. The accuracy of the label.

2. The likelihood the label will cause problematic misunderstandings.

When my rice-cooker logic is advertised as "AI", that's a stretch, sure... But it's extremely unlikely to cause an investment bubble seeking the Rice Cooker Economic Singularity, incur protests from the Rice Cooker Emancipation League, or lead to weird folks in their basement seeking divine wisdom from its vaporous whispers.