I agree it's misleading and it's very frustrating. I blame the lay press and social media that as you say became very suddenly aware of the results of AI research. This happened at different times, e.g. in 2016 with AlphaGo, then in 2017 with OpenAIFive etc etc. And lately again with LLMs.
I don't agree that it's a useless term. AI, as a research area, is well-defined by its journals and conferences and the grants that support that research. It's not the fault of the AI research community that OpenAI's app went viral and now there's so much confusion in mainstream discourse about the term. I try to set the record straight whenever I can but it does feel like fighting a pointless rearguard action, even in this community that is better informed than most.