Whenever AI is mentioned lots of people in the Linux space immediately react negatively. Creators like TheLinuxExperiment on YouTube always feel the need to add a disclaimer that "some people think AI is problematic" or something along those lines if an AI topic is discussed. I get that AI has many problems but at the same time the potential it has is immense, especially as an assistant on personal computers (just look at what "Apple Intelligence" seems to be capable of.) Gnome and other desktops need to start working on integrating FOSS AI models so that we don't become obsolete. Using an AI-less desktop may be akin to hand copying books after the printing press revolution. If you think of specific problems it is better to point them out and try think of solutions, not reject the technology as a whole.
TLDR: A lot of ludite sentiments around AI in Linux community.
What AI means will change, what it refers to will change. Currently, the LLMs and other technologies are referred to as AI, like you say. In five years time we will have made huge leaps. Likely, this will result in technology also called AI.
In a similar vein, hover boards are still known as exactly that - like in films. Whereas the “real” hover board that exists has wheels. We didn’t stop calling the other ones hover boards, and if we ever get real ones they will likely also be called hoverboards.
Hovercraft have existed for decades and actually hover which makes everyone just accepting Hoverboards as wheeled infuriating.