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I'm more infuriated by people like you who seem to think that the term AI means a conscious/sentient device. Artificial intelligence is a field of computer science dating back to the very beginnings of the discipline. LLMs are AI, Chess engines are AI, video game enemies are AI. What you're describing is AGI or artificial general intelligence. A program that can exceed its training and improve itself without oversight. That doesn't exist yet. AI definitely does.
I'm even more infuriated that AI as a term is being thrown into every single product or service released in the past few months as a marketing buzzword. It's so overused that formerly fun conversations about chess engines and video game enemy behavior have been put on the same pedestal as CyberDook™, the toilet that "uses AI" (just send pics of your ass to an insecure server in Indiana).
I totally agree with that, it has recently become a marketing buzzword. It really does drag down the more interesting recent discoveries in the field.
Right, as someone in the field I do try to remind people of this. AI isn't defined as this sentient general intelligence (frankly its definition is super vague), even if that's what people colloquially think of when they hear the term. The popular definition of AI is much closer to AGI, as you mentioned.