It’s probably more “AI” than the LLMs we’ve been plagued with. This sounds more like an application of machine learning, which is a hell of a lot more promising.
AI and machine learning are very similar (if not identical) things, just one has been turned into a marketing hype word a whole lot more than the other.
Machine learning is one of the many things that is referred to by “AI”, yes.
My thought is the term “AI” has been overused to uselessness, from the nested if statements that decide how video game enemies move to various kinds of machine learning to large language models.
So I’m personally going to avoid the term.