What is meant by the term "AI" has definitely shifted overtime. What I would have considered to be an AI back in time is nowadays referred to as an "AGI". So they simply changed the language. LLMs are not really capable of "intelligence" they are just automated statistics. On the other hand what really is intelligence? The output does appear intelligent. Maybe in the end it does not matter how it is generated.
Violating a country's airspace seems to be unnecessarily provoking.
Not sure what the best way to handle North Korea is but this does seem like a questionable decision.