Calling LLMs, "AI" is one of the most genius marketing moves I have ever seen. It's also the reason for the problems you mention.

I am guessing that a lot of people are just thinking, "Well AI is just not that smart... yet! It will learn more and get smarter and then, ah ha! Skynet!" It is a fundamental misunderstanding of what LLMs are doing. It may be a partial emulation of intelligence. Like humans, it uses its prior memory and experiences (data) to guess what an answer to a new question would look like. But unlike human intelligence, it doesn't have any idea what it is saying, actually means.