Machine learning is a better term because it's more specific (and less controversial). But under most definitions of AI, ML is a subfield of AI, so calling it AI may be suboptimal, but not wrong.
Personally I'm a fan of the AI definition "things humans can do and computers can't do yet", but I recognize that that definition isn't terribly useful.
Personally I'm a fan of the AI definition "things humans can do and computers can't do yet", but I recognize that that definition isn't terribly useful.