The term "AI" has been in use since 1956 to describe a wide variety of computer algorithms and capabilities. Neural nets and large language models fall very firmly under the term's umbrella.
What you're talking about is a specific kind of AI, artificial general intelligence (AGI). Very few people believe that an LLM on its own can become AGI and even fewer believes that current LLMs are AGI, so unfortunately you're jousting with a strawman here.