AI is a marketing term, not a technical one.

The reverse, actually. Artificial intelligence is a field of research that includes things like machine learning, as well as lots of even more mundane applications. It's pop culture that has hijacked it to mean "a thing exactly as capable as a human brain, but in computer form."

For example if the powers that be decided to say licenses don’t apply once you feed material through an “AI”, and failed to define AI, you could say you wrote this awesome OS using an AI that you trained exclusively using Microsoft proprietary code.

Once again, it doesn't matter what you "feed code through." Copyright applies to the tangible result. If the output from the AI matches closely to something that's already copyrighted then that copyright applies to it. If it doesn't match closely then that copyright doesn't apply to it. The actual process by which the code was produced doesn't matter one whit. If I took a Harry Potter book, put its pages through a shredder, randomly glued the particles of paper back together and it just so happened to closely replicate Lord of the Rings then the Tolkien estate has a case against me but the Rowling estate does not.