I think the argument is that for it to truly be AI, it would need to be able to react to new situations that it isn't trained on.
Like everything it does now is just picking the most likely thing out of the things it was trained on, but with no thought to the current situation.
For example, AI powered self driving cars can't really make decisions like, "hey there is a child playing with a ball on the side of the road, it's not a threat, but I'd better pay attention to where that ball is going". It will just not do anything until it is on a collision course and by that time, it may not have enough space to stop in time, because it also can't really tell the condition of the roads.
The AI as it exists right now basically only knows about the moment it is currently in and the moment it just left. It is not looking toward the future and thinking of possible outcomes and plans of action like we do. It doesn't attempt to identify situations until they actually happen so while it can react faster than a human, humans can make it so they never have to react at all.
Yes they can track some moving objects and if it is currently on a collision course it will react, but not until the point where it's clear that it is going to hit the thing. The car isn't going to gauge the situation and identify that there may or may not be a situation in which it needs to act or not.
For example, is an AI driver going to recognize an animal running in a fenced in yard as something it can ignore? What about when the animal is running in a trajectory that the car could see as an intersection in the future, but is otherwise prevented by the fence?
Or another common occurrence, you are driving in the right lane of a street, and traffic gets backed up in the left lane so a person doesn't look and just pulls into your lane. A good defensive driver would be slowing down a little and looking for any signs of someone trying to switch lanes. I guarantee an AI car would not identify the possibility until someone started making a move.
For it to truly be AI, it needs to think in advance, sort of like the chess computers do. It needs to take the current and past states, and judge possible future states and weigh them. Then take the outcomes from that process, and integrate them into future decisions. That is true AI, a lot of the AI that exists is just this static chain of probabilitys that sprinkles some randomness on top to appear as if it's different each time.