Futurology

The term "Artificial Intelligence" has been in use for over fifty years to refer to a wide variety of algorithms and processes, the vast majority of which are far simpler than the LLMs and diffusion models being referred to here. It's a perfectly cromulent word to be using in this context.

You are perhaps thinking of AGI (Artificial General Intelligence), which is the sort of thing Star Trek depicts. That's not what's being discussed here because, as you say, it doesn't exist yet.