Also the term 'LLM' is more about the mechanics of the thing than what the user gets. LLM is the technology, but some sort of automated artificial intelligence is what people are generally buying.
As an example, when people use ChatGPT and get an image back, most don't think "oh, so the LLM called out to a diffusion API?" - they just think "oh chat GPT can give me an image if I give it a prompt".
Although again, the term is entirely abused to the extent that washing machines can contain 'AI'. Although just because a term is abused doesn't necessarily mean it's not useful - everything had "Cloud" in it 10 years ago but that term was still useful enough to stick around.
Perhaps there is an issue that AI can mean lots of things, but I don't know yet of another term that encapsulates the last 5 years advancements in automated intelligence, and what that technology is likely to be moving forwards, which people will readily recognise. Perhaps we need a new word, but AI has stuck and there isn't a good alternative yet, so is probably here to stay for a bit!