For most users "AI" probably just means "chatbot" - and that's not compelling, because they can already access a chatbot, why would they want one in every product they use?
The more advanced features / workflows that LLMs can enable are kind of opaque if your points of reference are the ChatGPT web interface and summaries of search results on google.com - one reason that "agent" or "harness" have become useful jargon is that it distinguishes the tool we use and what it can do from the tech that backs it.
In C-suites AI appears to be some kind of limitless source of goodness and profits, so companies must optimise hard for it, or risk getting left behind.
Everyone else is either "Has some uses if you steer it carefully" or "Hell no."
And therefore probably in users' minds, when you say "AI", they think of all the badly done ones, not the good ones, because they didn't notice the good ones as AI. So when you advertise it as AI, that's a negative.