Milo is BS.
Even the greatest scientific minds of the past 50 years working with supercomputers have been unable to pull off anything near to what Lionhead showed.
I refuse to believe that the game developers who couldn't even get decent dog AI into Fable II managed to pull this off on a freakin' game console.
Milo is almost certainly just like all the chat bots you can find on the internet, only utilizing voice recognition instead of text input. See A.L.I.C.E. for example - that's probably what Milo is like. The 'demo' we were shown was all obvoiusly scripted.












