I think the way the word Ai we used in the past for computer programs and games, and with the modern LLM is, we actually mean "the illusion of an intelligence". Because that is what the term Ai in most cases mean. Ai is as much of an illusion like VR is not a real reality. Maybe we should have called it Vi, for Virtual Intelligence. But that is just yapping about the words, where their meaning doesn't change just because you use a different word.

Yes, there are lot of people who don't understand the technology and think Ai is comparable to the way how "real" intelligence work. But in reality it is just perceived to be intelligent, making it a virtual illusion of it.