Clearly, with a decent bullet placed in the right place, the .223AI will do just fine, just like the straight version, and just like any number of other cartridges. Some states have recognized the fact that most hunters will use something that will help them be successful and elected to treat them like adults by allowing the use of smallbores. Others, not so much. Strangely, the government agencies that cull deer in parks and urban areas are generally using much less effective rounds in order to be unobtrusive to the public. As far as I know, they aren't leaving a bunch of wounded deer running around.
All that said, and even though all centerfires are legal for deer here, I don't use a .223 as I don't own one at present. Even if I did have one, I would likely continue to use the other, larger rifles as I believe they are a better choice for where I hunt these days. Folks that hunt where they feel their smallbores will be effective ought to be able to use them.
