AI made a large improvement in accuracy on a specific protein dataset. We still don't know how exactly protein folding works. So no, it's not solved.
Turns out that “give a reasonable probability of being close enough such that you can bootstrap a solution out of experimental data” gives a very high utility and effectively obsoleted several experimental techniques overnight; pretty much “Molecular replacement” is about the only technique for phasing resolution anyone bothers with any more.
But again, “Bio” is an _extremely_ broad term; for every part of the field Alphafold had a big effect on there are a thousand different parts of the field that it did nothing for.