Not sure I agree here. Seems to me the ambiguity comes from the word "intelligence". As in, does that if/else clause indicate "intelligence" that's been programmed in. Of course we've created more terms like Artificial General Intelligence[1] to try to clear up the muddy definition of what constitutes intelligence.
I think our fundamental challenge as society begins to try to understand what AI is comes down to what "intelligence" is. As you said, we all know what it is, but can't define it easily. If I write some really clever code, is the system running it intelligent? Is some of my intelligence imbued into that system, or does it have some of its own? At what point does a stochastic process approach intelligence - when it has enough data? Does that mean babies aren't born with intelligence, but acquire it as they learn more? So many questions, good questions, necessary questions.
[1] https://en.wikipedia.org/wiki/Artificial_general_intelligenc...