it means roughly, that it has a sentience value rouhgly one tenth of that of a human. It is around a tenth as smart, although it can assimilate information as fast as a computer.
It's a way of valuing sentience:
AI 1.0 = Sentience equivelant to a human
AI 2.0 = Human Sentience squared.
AI 3.0 = 2.0 cubed
Etc.
You cannot apply a mathamatical modifier or operator to a human-like intelligence. Human and artificial intelligences work in different ways.
If you work with software, the whole "1.0" thing is a buzz-word and isn't used any more unless there are incremental upgrades along the way which can be quantified as packages or systems.
Anyway. A programmer works in the following way:
1) Produce a breif & design
2) Produce an early prototype (Alpha/"A")
3) Produce a version that works as it should (Beta/"B"). This is usually also a concept demonstrator for key interests and stake holders.
4) If there are major problems, work from Beta until you are complete.
5) Produce your final version fit for consumption ("Going Gold").
Now, when you look at the human mind, it doesn't work like software. An AI would be constantly revising itself and thus never really remain the same package. Just a core program writing its own plugins and modules to cope with the situation around it.
You could quantify an AI with an intelligence raiting. The enemies in say MGS3 are smart but I can't hold a conversation with them and they don't understand concepts.
Would it not be better to work with an IQ, a number of cycles per second and the speed information is interperated from the outside and the adaption rate to cope with new information correctly (An AI does not see as we see. It can, however, learn to see how we cannot see.)