There's a conflation of terms.

One sense of AI is as artificial intelligence: a huge swath of computer algorithms, techniques and study relating to machines measuring inputs, pulling information from them, and making decisions based on what they deduce. Sometimes it's little more than a handful of equations that capture how to group things together by similarity. What matters is that it's demonstrating demonstrating intelligence or some manner of operating on knowledge.

The other sense of AI is as a synonym for "a general purpose intelligent system of at least human level".

Your phones auto complete is an example of the first sense of AI. The second sense doesn't exist.

There's a tendency for people to want to remove the AI label from anything they're used to, or that isn't like that second sense.