I think at some point the former became dominant, because its more achieveable, but its also the one that gets most interesting when it fails. Because of the way this AI learns, when its wrong it can be brutally wrong.
I think there will be a revolution in AI getting into more spaces, but only in areas where its ok to screw up (ie ultimately a human is filtering the AI response at some degree, whether its the user knowing when to ignore the GPS or Siri, or an overseer looking over the AI output and checking it before it goes out). I'd be really surprised to see AI doing anything important by itself.
Also, I thought Google already had a fairly solid AI research effort well underway.