I think there is most likely set of adjectives that would fall under same reasoning. GreenAI or FreeAI likely would be also be refused.
On other hand RedAI or BlueAI might very well pass. It is not entirely unreasonable decision if you consider if the terms would be used in regular conversations on AI.
It doesn't actually mean anything though, so I think it would pass as a trademark. Apple Computer is allowed because Apple doesn't mean anything in relation to computers. You might have trouble with Mouse Computer unless you were the company that invented or popularized the mouse.
On other hand RedAI or BlueAI might very well pass. It is not entirely unreasonable decision if you consider if the terms would be used in regular conversations on AI.