The wide public has accepted calling all LLMs as "AI". LLMs are probably the best tool to create quality, native-sounding translators. Since LLMs are called "AI", modern translation engines which are made using LLMs will be called AI.
The other guy is just being a prescriptivist with language. It's a sentiment I sympathize with and which others have made very coherently, but at some point we have to just accept that the "buzzword" is the way it is going to get used and stop getting bent out of shape about it.