I think we are on the same track.
Yes, visual guidance won't guide a missile to an aircraft from over 5 km away, but once close in it can.
If a human can see an aircraft through a cloud of chaff then an AI vision system will be able to so as well (and distinguish the aircraft type from multiple angles).
Cruise missiles are put on target firstly using inertial and/or GPS guidance and then visually using terrain following video. They are sometimes guided precisely in the last few hundred yards by video to do things like fly through a window.
The advantage that video with an edge AI chip doing the processing is it's cheap
However, guiding a missile is just one example, and even if not a good example it does illustrate the types of possibilities edge AI chips create.
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