Maybe if marketing people stopped using the incredibly generic term "AI", and started actually saying what something is, it might work better. When you say "this app is powered by AI", do you mean Skynet, an LLM, or a basic machine learning system?
What's a "basic machine learning system?" is this a question of the size of the model or the algorithm? Which algorithms are basic? If you've got an ensemble of models that includes multiple transformers not all of which are LLMs as well as CNNs, how do you think the marketing people should express that?
Literally always LLM. AI is now synonym for LLM, regardless of what it meant before. Just like crypto is now synonym for e-currency and does not mean cryptography anymore.
People are not confused about these.
AI categorisation is second nature to us software engineers, it's easy to forget that the average person probably only knows the architecture for a transformer and one or two CNNs.
https://xkcd.com/2501/