AI is not just neural networks / deep learning. Those rule-based bots are AI too, just different approach (something called expert systems is subcategory of AI too).
They did lose in an AI bot battle. A rule based bot is still an AI.
Things can be accurate but misleading. This is a good example of misleading and accurate.
Automated decision making does not an intelligence make on it's own.
Call again when it can actually learn the game from limited inputs available to human players.