Although there's a toggle in the game labeled AR that turns on/off the camera as the background while catching Pokemon, I think Pokemon Go has a broader AR implementation.
My friends playing it have all discovered new things in a city they've lived in for years because of Pokemon Go. So even if they play the game with the camera turned off while catching a Pokemon, there's still a map always on showing how in-game places match up with the real world.
This translates to a weird phenomenon: the other day when we were standing outside a gym by a church, my friends and I noticed on our phone screen that a battle was happening at this gym. Instinctually, me and a few others took our eyes off our phone and turned our head to look at the spires of the church, since gyms are shown in-game as tall structures.
It sounds strange, perhaps even cheesy, but Pokemon is engaging our imaginations in a pretty interesting way.