It's just the mimicry thereof. I probably fall into the "pro-AI" camp if we want to divide things along the binary, but it's pretty facile to consider this software to possess or represent "intelligence" IMO.
I agree with that, but I don't think anyone is moving the goalposts as you imply later in your post.
Machine learning wasn't unheard of 20 years ago, and statistical text engines were hitting consumer use (iPhone autocomplete probably what 2008-2010?)
It’s not general intelligence, but it’s a system that’s able to produce novel outputs from its inputs in pursuit of a goal. The fact that the goal is always externally-provided is more related to consciousness than intelligence.
Search algorithms used to be considered a part of AI research. The whole point of the field, from the Turing test onward, has been that mimicry is in some sense all you need. Maybe there's a coherent philosophical position where intelligence is defined as some intrinsic property possessed by conscious agents, but I find it remarkably hard to come up with a precise definition along those lines.