In the industry ML is considered a subset of AI, as are genetic algorithms and other approaches to developing "intelligence". That's why people tend to use AGI now to differentiate, because the fields been evolving (not that I agree with the approach either) . Honestly, you show someone even 10/15 years ago what we can do with RL, computer vision, LLMs and they'd certainly call it AI. I think the real problem is a failure to convey what these things actually are, they're sold to the public under the term AI only to hype up the brand/business.