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We call things like this AI because the closest thing we have to describe what it does is the word "learning".
Think about how a child naturally categorizes things. That's a dog, no that's not a dog that's a cat. What's the difference between a dog and a cat? As the kid gets more input, he will be able to distinguish between a dog and a cat, then between breeds of dogs. In your mind's eye, when you think of a dog, you likely don't think of a specific picture of a dog, but you have a concept of a dog synthesized from all the dogs you've ever seen.
In the same way, these models are only as good as their input.
