Proper terminology for Artificial Intelligence in games

I was curious if game A.I. had a technical term since it's not really Artificial Intelligence, but rather the illusion of intelligence. Or is it simply just called Game A.I.? Is there a term in another field that represents the same thing?

All artificial intelligence is merely an illusion of true intelligence. This doesn't change depending on the environment, including video games.

In the industry, we do call it A.I.

Thing is, what is taught in college as AI is as much Artificial Intelligence as a rubber duck is Artificial Life. There is no known algorithm that replicates animal or human intelligence yet. Everything we know as AI should be better described as "simulated intelligence".