But it is absolutely human nature to get used to things and not consider them magical anymore, things simply become the new norm. This is exactly what happened with feedback controllers like airplane autopilot systems (1912 - https://en.wikipedia.org/wiki/Autopilot)
I've worked for a number of years on industrial robotics, which sounds very similar to your definition of "AI": real physical machines that take data from various sensors, including spatial sensors, make sense of them in real time, and decide how to optimally interact with the physical environment, with safety critical systems in mind. I hardly think about such systems as AI, more simply engineering, math, and a lot of coding.