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It is 100% valid to label an algorithm that plays tic-tac-toe as "AI"
Much of the early AI research was spent on developing various algorithms that could play board games.
Didn't even need computers, one early AI was MENACE [1], a set of 304 matchboxes which could learn how to play noughts and crosses.
[1] https://en.wikipedia.org/wiki/Matchbox_Educable_Noughts_and_...