

I don’t think the term AI has been used in a vague way, it’s that there’s a huge disconnect between how the technical fields use it vs general populace and marketing groups heavily abuse that disconnect.
Artificial has two meanings/use cases. One is to indicate something is fake (video game NPC, chess bots, vegan cheese). The end product looks close enough to the real thing that for its intended use case it works well enough. Looks like a duck, quacks like a duck, treat it like a duck even though we all know it’s a bunny with a costume on. LLMs on a technical level fit this definition.
The other definition is man made. Artificial diamonds are a great example of this, they’re still diamonds at the end of the day, they have all the same chemical makeups, same chemical and physical properties. The only difference is they came from a laboratory made by adult workers vs child slave labor.
My pet theory is science fiction got the general populace to think of artificial intelligence to be using the “man-made” definition instead of the “fake” definition that these companies are using. In the past the subtle nuance never caused a problem so we all just kinda ignored it
May I present to you:
The Marriam-Webster Dictionary
https://www.merriam-webster.com/dictionary/artificial
Definition #3b