Machine learning has some pretty cool potential in certain areas, especially in the medical field. Unfortunately the predominant use of it now is slop produced by copyright laundering shoved down our throats by every techbro hoping they'll be the next big thing.
The term AI was coined in 1956 at a computer science conference and was used to refer to a broad range of topics that certainly would include machine learning and neural networks as used in large language models.
I don't get the "it's not really AI" point that keeps being brought up in discussions like this. Are you thinking of AGI, perhaps? That's the sci-fi "artificial person" variety, which LLMs aren't able to manage. But that's just a subset of AI.
Yeah, these are pattern reproduction engines. They can predict the most likely next thing in a sequence, whether that's words or pixels or numbers or whatever. There's nothing intelligent about it and this bubble is destined to pop.