As an engineer working in the field who has designed both cloud algorithms and on-firmware algorithms, when marketing uses AI, it tends to just be training/data fitting. At best, the most complicated ones tend to be random forests and if any use neural networks, it’s usually just overkill.

The answer to your last question is yes, especially when it’s from raw signals.

Tbf, there are applications from devices that do use deep learning methods but from experience they are not practical except on very edge cases.