You’re confusing AI with AGI. AGI is the ultimate goal of AI research. AI are all the steps along the way. Step by step, AI researchers figure out how to make computers replicate human capabilities. AGI is when we have an AI that has basically replicated all human capabilities. That’s when it’s no longer bounded by a particular problem.

You can use the more specific terms “weak AI” or “narrow AI” if you prefer.

Generative AI is just another step in the way. Just like how the emergence of deep learning was one step some years ago. It can clearly produce stuff that previously only humans could make, which in this case is convincing texts and pictures from arbitrary prompts. It’s accurate to call it AI (or weak AI).