There's plenty of applied AI out there, but since the '70s people prefer to call it something that sounds more practical, like 'machine intelligence' or 'soft computing'.

Part of the reason people don't notice it is that many of the applications are 'hidden' in embedded systems, especially control systems and computer vision. Also, any practical application is likely to be limited in its ambitions and there are always disputes over how 'intelligent' something has to be to qualify as AI.