Sure, we could say that the popular usage of the term AI no longer actually stands for "artificial intelligence". Or we could say that the term "artificial intelligence" is no longer understood to refer to something that can do a large part of what actual intelligence can do.
But then we would need a new word for actual, real intelligence and that seems like a lot of wasted effort. We could just have the words mean what they've always meant. There is a lot of good in spreading public awareness of the vast gap between machines that seem as if they understand a language (when actually they just deeply model its patterns) and imaginary machines that are equipped to actually think.
I could go with that.
Still having a hard time with the idea that a thing could be even "some level of intelligent" without being sentient. But we don't need to continue from there, there's any number of people ready to pile on at that point and say that it's "all semantics anyway" or start deconstructing sentience.