Comment by a1studmuffin

Game AI has nothing to do with AGI (or even regular AI) beyond the surface level description OP provided. The reason game AI hasn't progressed in the last few decades isn't because technology is holding us back - after all we can already achieve impressive machine learning feats using current-gen GPUs - it's because bad NPC AI is by design, so players can learn to overcome them and succeed. Very few people want to play a game that always beats them. Most games use simple state machines or behaviour trees with predictable outcomes for their NPCs because it would be a waste of effort to do anything more, and actually negatively impact the game by making it less fun and burning engineering time on things the player won't benefit from.