I agree that aircraft autopilot/other basic applications of control theory are not usually considered "AI," nor were they ever — control theory has its roots in mechanical governors.
Certain adaptive cruise control systems certainly are considered AI (e.g. ones that utilize cameras for emergency braking or lane-keep assist).
The line can be fuzzy — for instance, are solvers of optimization problems in operations research "AI"? If you told people in the 1930s that computers would be used in a decade by shipping companies to optimally schedule and route packages or by militaries to organize wartime logistics at a massive scale, many would certainly have considered that some form of intelligence.
Certain adaptive cruise control systems certainly are considered AI (e.g. ones that utilize cameras for emergency braking or lane-keep assist).
The line can be fuzzy — for instance, are solvers of optimization problems in operations research "AI"? If you told people in the 1930s that computers would be used in a decade by shipping companies to optimally schedule and route packages or by militaries to organize wartime logistics at a massive scale, many would certainly have considered that some form of intelligence.