In modern cyber-physical systems, the integration of AI into vision pipelines is now a standard practice for applications ranging from autonomous vehicles to mobile devices. Traditional AI integration often relies on cloud-based processing, which faces challenges such as data access bottlenecks, increased latency, and high power consumption. This article reviews embedded AI vision systems, examining the diverse landscape of near-sensor and in-sensor processing architectures that incorporate convolutional neural networks. We begin with a comprehensive analysis of the critical characteristics and metrics that define the performance of AI-integrated vision systems. These include sensor resolution, frame rate, data bandwidth, computational throughput, latency, power efficiency, and overall system scalability. Understanding these metrics provides a foundation for evaluating how different embedded processing architectures impact the entire vision pipeline, from image capture to AI inference. Our analysis delves into near-sensor systems that leverage dedicated hardware accelerators and commercially available components to efficiently process data close to their source, minimizing data transfer overhead and latency. These systems offer a balance between flexibility and performance, allowing for real-time processing in constrained environments. In addition, we explore in-sensor processing solutions that integrate computational capabilities directly into the sensor. This approach addresses the rigorous demand constraints of embedded applications by significantly reducing data movement and power consumption while also enabling in-sensor feature extraction, pre-processing, and CNN inference. By comparing these approaches, we identify trade-offs related to flexibility, power consumption, and computational performance. Ultimately, this article provides insights into the evolving landscape of embedded AI vision systems and suggests new research directions for the development of next-generation machine vision systems.