And the algorithm AI does magic to make our product more awesome than the competitor.

Yeah, the lack of formal definition of what is and is not considered ai definitely muddies the waters when talking about applications and capabilities.

Ai is already being incorporated into chip design tools like synopsys. TechTechPotato has an interesting interview with Aart de Geus that is relevant.

Ai is far off from making high level design improvements, but it can greatly reduce the workload on trace and route and other design steps.