Hi the old traditional method of baking involved baking your AO and overlaying it over your diffuse in photoshop.
Since the is an AO slot in the material editor I was wondering if that sort of workflow is needed anymore.
With PBR, you don’t want any shadow information on the diffuse/albedo.
Using the ambient occlusion slot in the material editor is the way to go. Just bake your AO as normal, but keep it as a separate texture (or store it in an alpha channel)
I don’t know the specifics, but it should allow the engine to occlude light in those areas without permanently baking the AO to the diffuse/albedo.
I tested the new “pin” of AO material input, and works nice. I just bake the AO texture using XNORMAL, and that´s it! Plug to the AO pin in material editor, and relax 