I would put it differently. Sometimes words have two meanings, for example a layman's understanding of it and a specialist's understanding of the same word, which might mean something adjacent, but still different. For instance, the word "theory" in everyday language often means a guess or speculation, while in science, a "theory" is a well-substantiated explanation based on evidence.
Similarly, when a cognitive scientist talks about "intelligence", they might be referring to something quite different from what a layperson understands by the term.
Opponent players in games have been labeled AI for decades, so yeah, software engineers have been producing AI for a while. If a computer can play a game of chess against you, it has intelligence, a very narrowly scoped intelligence, which is artificial, but intelligence nonetheless.