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Indirect light will skip AO on lights, as AO is the fast approximation of what indirect light is doing for real. In shaders, however, it gets evaluated as it could be used for anything - not just plain occlusion, you can make some really cool procedurals with it, like rust in corners.

I think BB said in another thread to make sure NOT to use AO (including in shaders) when using IDL.

If ever stewer and I seem to contradict, believe stewer. He is the guy who wrote the renderer for SM. (In case you didn't know)

I thought I said in the other thread that light-based AO would be ignored automatically, and material-based should be removed.

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Renderosity forum reply notifications are wonky. If I read a follow-up in a thread, but I don't myself reply, then notifications no longer happen AT ALL on that thread. So if I seem to be ignoring a question, that's why. (Updated September 23, 2019)