The AI models are now better at CAPTCHAs than I am, for both text- and image-based questions. But when confronted with a CAPTCHA, humans work for free, and the models don't. :(
As long as that's the case, CAPTCHAs probably won't be considered truly obsolete.
The original assertion was:
Not if many CAPTCHA image challenges could be automated. Unless the tool referenced guarantees 100% correct solutions for all manipulated text images.