A $20 battery-powered camera that can detect animals, humans, vehicles, and trees, and store + send an alert in real time of which it detects (as well as a description). Or a mini robot that can navigate obstacles and perform tasks while offline. Or a tiny industrial sensor that can detect a motor degrading due to the sound of its hum deviating from trained examples. Or an RF detection algorithm that ignores common band patterns and isolates unusual spikes in usage among dense noise. Or a motion tracking sensor that uses radar and video to track an object in a room. I mean really there's thousands of use cases. And this little Flipper One has 10x-100x the power of the ESP32-S3
So, for better or worse, none of that is considered "AI" anymore. Actually, I don't think anyone ever had the gumption to call it AI. Machine Learning or Computer Vision are the terms I remember.