The problem is how people define Intelligent. It is usually a comparison. Often the program will be compared to the average educated adult human. Obviously, all attempts at artificial intelligence fail miserably (Read about the Turing Test for intelligence)
A search of a single document by keyword is about as simple as you can get. Being able vaguely describe to a music store owner what kind of stuff you like and having him grab out a record that you absolutely love is about as good as you can get. Everything in between is usually described against one of these two extremes. Google does use keywords, but their technology is a great deal more complicated than that, and also a great deal more effective (except when it fails miserably like GoogleBombing). Still it is a far cry from that music store owner I described.
In this light, whether some algorithm is described as being intelligent is really more of a subjective thing and depends on what you are comparing it to. Generally the best technology of the time is considered quite intelligent, mostly because it seems amazing compared to what we are used to. Obviously after a few generations, it doesn't look so impressive and is not thought to be very intelligent at all.