Apparently procedural generation and constraint solvers are AI now? I thought they were just algorithms. (I love Townscaper, btw, but this article—whew.)
In any case, since around the release of Unreal Tournament in the late nineties, I've always just referred to them as bots— that feels for me like it strikes the right balance in terms of expressing that it's a non-human participant in the game, and one whose behaviours may be varying degrees of intelligent, as far as leveraging pre-scripted actions and potentially cheats.
I.e. generally behaving pretty similar to players, minus the environment-exploitation
If you are just referring to AI as in ML, even then ML is at its core a series of processes for tuning control systems. Those ML models are just complex versions of traditional systems from control theory with the tuning handled by the training process.
So yes in a sense, procedural generation, constraint solvers, wave collapse, etc can all be seen as AI since they are just different ways of solving the problem of "how do I believably make/do X in a useful or believable way".
Yes, these days it's most commonly used to describe something that we can't quite understand the inner-workings of (huge neutral networks; big data), but A* pathfinding and decision trees are also AI.
Later I called it: “AI”
Such as “Is the AI still brain dead in Civilization VI?”
In a gaming context I think of it as entirely different from a more computer science definition of AI.