It's only being called "AI" because it tricks people (Notably, investors) into thinking it's actual AI, but it's not.
This isn't bad in of itself (Outside the economic concerns of this investor hype, with it massively impacting prices of computer components and causing lots of Data Centres to get built which suck up all the water and use tons of electricity)
The main controversy surrounding "AI" comes from the way that the current fad iterations function. Which is by training a dataset to regurgitate to users.
And this exactly is what I keep trying to tell anyone that listens. It's not the technology evolving, as it never is. It's the horribly delayed and long-term lack of regulation. IMHO, technological progress should be treated something like cyber security. As soon as some new vulnerability is identified, it's a race to fix it up before too many bad actors exploit it. Replace "vulnerability" with "technology", "fix it up" with "regulate it" and that is the principle I would personally *love* to become internationally-spaning law.