This particular issue (AI performance on captchas) is really quite fascinating. It's an arms race, but the problem is, only one side can win. Google is claiming they have improved their system in some (understandably) unspecified way, but there's only so far this can go. Captchas need to detect whether someone is human, but it has to work for everyone, ideally, even those with disabilities. Any simple task a human ca…
As to your questions, I think the way it's going with these convolutional neural nets, the idea of being able to tell a human from a computer with something like captcha isn't going to work. I'm thinking a captcha that still would work would be a randomly generated natural language instruction that a user has to interpret with some top down reasoning (possibly with a natural text answer). We've still got a ways to go before we can do that really effectively with software.