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The problem with calling these tools AI is not really an argument from definitions. The argument at its core is saying that the general public brings a lot of assumptions to something that's being called "AI", which aren't true but benefit investors.

Like, all those stories of chatgpt citing fake studies and fake case law blew people's minds. If you know what chatgpt is (a fancy predictive text algorithm) these are pretty unsurprising events, but a lot of people had heard "AI" and applied their own associations onto its perceived capabilities, which was exactly the point of calling it "AI" instead of "LLM"