Yes, people still play, but they no longer create.
With the exception of Adversarial attacks on particular algorithms, no human is creating new Chess theory, discovering new openings, for example.
As a game, challenge, competition, social activity, chess is alive and well.
As a creative endeavour, or vehicle for discovery, Chess is solved. It is no longer an art of its own.
We're part way through this transition now with Go as well. New opening theory, new joseki, new strategies are being played by robots, and at the highest professional levels we are playing catch-up to understand.