AI has included everything from neural nets to video game NPCs for as long as I'm aware of. What else is the broad umbrella term? We have to have one. And for anything else, you need to be specific about its properties anyway. In particular, usage of "real AI" is nonsense without a more precise definition.

It isn't nonsense. If AI was such a broad umbrella term, why would companies be tripping over themselves to use it? If it meant video game NPC level of intelligence, nobody would be in a hurry to adopt it. It's very clear that when Nvidia or OpenAI use the term AI, they really want you to think these LLMs are actual human level intelligence. That is why they are doing it.

When I use nonsense like "real AI" I think you very well know what I mean, and don't find it in any way confusing or ambiguous.

Everyone thinks they know what "real AI" means, but they usually mean some mishmash of "general intelligence", "human-like intelligence", and "deserves moral rights", none of which firmly imply each other but which they'll often freely equivocate between. If you mean something more specific than this semantic disaster zone, say that instead.

AI company marketing usage only indicates they're trying to take advantage of this confusion. They're bullshit artists who are trying to make sales, not communicate.