Ambient Occlusion does not seem to function when enabling Forward Rendering. I tested the level without Forward Shading and could notice a visible difference in the shadows when Ambient Occlusion was enabled and when it was disabled. With Forward Rendering enabled there was no visible difference.
Tested in //UE4/Release-4.25 @ CL 14469661 and Ambient Occlusion does work with Forward Shading so marking as a Regression.
RESULT:
Ambient Occlusion has no effect on the lighting or shadows in the level
EXPECTED:
Ambient Occlusion would function when Forward Rendering is enabled
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-109352 in the post.