The phrase "is referred to" is too vague for my taste. I'm all for descriptive language when it comes to the everyday, but for technical terms, I think definitions are what should matter.

With that said, AI is certainly not defined in terms of human intelligence. "Aeronautical engineering texts do not define the goal of their field as making machines that fly so exactly like pigeons that they can fool even other pigeons" (stuart russel).

Also, AI is not defined by corporations. It's defined by computer scientists. As for delineating to the masses, I think the answer to that is proper education.

Your TV turning on when you walk into a room IS AI. It's not a dumbed down definition, it's the definition widely agreed upon by computer scientists. Just because marketing is deplorable doesn't make it otherwise.