It isn't redefining anything. There's a classification in AI research called "strong AI" that includes Artificial General Intelligence and machine consciousness. Current uses of ML are instances of so-called "weak AI" which is focused on problem-solving and utility.

No redefinition, and using proper distinctions takes nothing away from the accomplishments made in the field. We don't even have anything close to a scientific understanding of awareness or consciousness. Being able to create machines actually possessing awareness seems fairly far off.

Being able to create machines that can simulate the qualities of a conscious being, doesn't seem so far off. I suspect when we get there the data will point to there being a qualitative difference between real consciousness and simulated. Commercial interests, and likely government bureaucracy will have a vested interest drowning out such ideas, though.

The bar hasn't moved. We've just begun aiming at different targets. That we succeed in hitting the more modest ones only makes sense.