By the time they were trying to defeat the world champion, they didn't really think of it as an AI project any more. They often used the term "expert system", which had a much narrower scope. It had become a challenge unto itself, but they didn't expect it to lead to any kind of generalized intelligence.
It came rather out of nowhere when neural-net-type engines suddenly swept back into dominance. Even after becoming the world chess champion, nobody expected Go to be solved any time soon.