I consider the algorithms Band-in-a-Box uses as a form of artificial intelligence because the software is making musical decisions based on melodic song structure.
Surely that's using some well designed and clever pattern matching algorithms, isn't it?
If it was true AI, then BiaB would continue to reason and learn all on its own - it would continually become more and more intelligent.
Separately, it wouldn't need 192,000+ RealTracks files and 14,000+ Drums files, because it would be able to produce that music itself using a much smaller array of audio sounds instead or pre-recorded musical extracts.
Don't get me wrong, what this system does is exceptional. It is brilliant. But unless it 'learns by itself' and as a result becomes more and more smarter, i.e. creates its own intelligence, it's not AI.