Large language models (LLM) are the product of neural networks, a relatively recent innovation in the field of computer intelligence.
Since these systems are surprisingly adept at producing natural sounding language, and is good at create answers that sound correct (and sometimes actually happen to be) marketers have seized on this as an innovation, called it AI (a term with a complicated history), and have started slapping it onto every product.
This is correct, for at least the scope of my life - business likes to treat other non-business organizations as simply inferior businesses.