Ambient Occlusion - Smashing-Tech/Smash-Hit-Blender-Tools GitHub Wiki
Ambient Occlusion calculates the amount of ambient light that is lost at corners and edges due to surrounding objects blocking out light.
When a scene is filled with just AABB's, like in Smash Hit, and you don't mind a bit of inaccuracy from the real baker, there is a pretty fast way to calculate a decent looking approximation.
However, nither the developer Smash Hit mesh baker nor the Blender Tools baker are accurate to real life, and the Blender Tools baker isn't accurate to Smash Hit because it is a different kind of approximation.
To the right, you can see an image of the results for the Blender Tools baker.