Where does a program just following algorithms stop and actual artificial intelligence start?

Reading this post made me question this. Overall, I do not mind having A.I. in our life and think that a co-existence between humans and machines can be a wonderful experience for both parties.

.....he said, already humanizing the A.I.s.

I think that a lot of people having trouble coming around with A.I. because the entertainment industry has made a fortune with demonizing A.I.s over the course of decades. Terminator being the most obvious example here.

I don't think it has to be this way.