The problem is that “AI” doesn’t really entail any concrete technical capabilities, so if the term is seen in a positive light, people will abuse the limits of the definition as far as they are able.
Not really a new phenomenon. Been done in the past as well, with “AI” as well as other things.
With “self-driving cars” being vague – someone could advertise a car that could park itself “self driving” – we introduced newer terms that were linked to actual characteristics, like the SAE level system for vehicle autonomy.