Intelligence is knowing or understanding, not a reaction, in a rational manner. AI, and computers generally, receive a series of inputs and correspond with output. A calculator receives 'one' 'plus' 'two' 'equals' and responds with 'three'. Intelligence involves the intentionally. In the linguistic jargon, they have only a syntax but no semantics.
Machines expand the intentionally of humans but are unable to possess intentionally.
The machine can operate on the single level of responding to inputs. Insofar as the machines responds to inputs, the machine possess intelligence, however, the entire process including relationships and warrants behind the process are outside the purview of the machine. Humans possess the knowledge of these relationship. The relationship are part of the human set of beliefs. If intelligence only included formal symbolic manipulation the machine would be intelligence.