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I think it's both. Some people dislike all AI because of generative AI like LLM's, but many people seem to care about making the distinction between generative AI and traditional ML.
I suspect a lot of the former group is don't that out of ignorance or forgetfulness - I do it all the time, because I often assume people are talking about GenAI. Which is probably a reasonable assumption about 90% of the time these days, but it is better to be clear about it.
Also, a friend who has a background in AI draws a distinction between ML and non-generative AI: ML is basically tools for overpowered statistical analysis and pattern finding, AI is attempts to partially recreate aspects of intelligence, and can include evolutionary algorithms and stuff. Still not sure I see the distinction (and there is overlap), but they're way more informed than me..