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Material Ambient Occlusion input problem

Hey everyone. I don’t know if it’s a bug or it is how it supposed to work in UE 4.2, but I’m getting very weird results when I plug my AO map into dedicated Ambient Occlusion input for the material. I get very nasty artifacts all over my mesh and in general the shading of the mesh doesn’t look right and it’s driving me crazy.
Here’s the screens:
AOinput.jpg MAT_AOInput.jpg

However when I plug my AO map directly into BaseColor input the result looks way better and more correct
BaseColorInput.jpg MAT_baseColor.jpg

I also tried my AO map in Toolbag 2 and it looks just fine so it’s not the problem with my AO bake
Toolbag.jpg

Does anyone know what is happening? Why the dedicated Ambient Occlusion input behaves like that? Am I doing something wrong?

P.S. Sorry if I posted this in the wrong place. I just though it relates to rendering