"American Indian" is the term used by the US government on the census form, so it likely is used in many other surveys that use a similar format. (I don't know how broadly it is seen as an offensive or incorrect term.)

http://www.census.gov/acs/www/Downloads/questionnaires/2014/...

There's actually lots of dispute about this--substantial numbers, perhaps a majority, of... indigenous people prefer American Indian to Native American, since the latter sounds like something a government bureaucrat would dream up. A fairly radical and influential group exists that embraces that name, the American Indian Movement.

Nah, you're Indians!

https://www.youtube.com/watch?v=L9VMY8X9rU8

American Indians tend to prefer the term "American Indian" to "Native American". The term "Native American" was invented by white liberals to make themselves feel better.

Nor should "Indian" be used to refer to South Asians. Pakistanis, Bangladeshis and Nepalis are not Indians.

That's not the point. The point is, its super confusing to me(and possibly to Native Americans too) if 'Indian' is meant for one group or the other.

Yeah man, big no-no there. Indian refers to the ones from Southeast Asia (i.e. you), not Native Americans.