Language is indeed evolving.
Being good in chess was (and still is) associated with being intelligent. But if a computer does it, it is just a calculator (and it is).
Then go, the great game for intelligence, too complex for calculators to have a chance against intelligent humans. Until it was solved.
And then text, the original Turing test solved, AI capable enough to fool humans. And now already replacing humans in jobs strongly associated with intelligence - programming.
I find it hard to debate, that we don't have created artificial intelligence, by the way we used to use the word "intelligence" before.
So if AI is really understanding something?
Likely not in the way we use that term. But it definitely shows intelligent behavior and actions.