The one thing thats been forgotten this gen in the natural evolution of technology for gaming is AI. There has been little major strides in AI advancements across gaming and there has been little consumer push or universal pressure by the industry and media to innovate in this vital area. 

While there has been improvements, they are only small steps to what we had an year ago. This gen has had one focus, graphics. Graphical advancement is what the studios are pushing for when really AI is the next evolution in gaming because there will reach an point where graphics will level out with no where to go, and we shouldn't be wasting all the money on the outside when its the insides that count. 

The PS3 had all those cores for processing with SONY intentions that they would be used for AI, the end result was that they were used to process graphics. 

Really i want AI to improve. And who thinks the same. 

Also What improvements do you want?

The only major leap in AI that I can think of was when the original Half-Life was released. Like you said everything else was small incremental leaps but in Half-Life the soldiers actually did what you'd expect soldier to do at a time when most games still had enemies running into walls.

I think Heavenly Sword on PS3 did something clever with the SPUs on PS3, splitting the AI into "groups" but that's not particularly transferable unless you have a game with huge number of enemies. Killzone 2 (haven't played Killzone 3) had some fairly intelligent AI to the point where the bots sometimes acted human-like.

AI hasn't improved for the longest time.

What's improved is the processing power that allows for more variety of AI, fooling you into thinking it's been improved.

actually ai did improve. in games such as in kz2 where they try to flank you.

also the ai in cod are smart, on veteran difficulty they cook grenades. yes they do many stupid things. but atleast they cook grenades.

And you don't suppose it's possible to... script them to cook grenades in certain situations? It's not smart, it pretty basic actually.

Why,not just increase the difficulity level? How,would you want the AI to improve. I don't think I would want the AI,so smart,that I could'nt even finish the game.

That's what any AI is : doing certain things on certain situations, do you think it's some kind of magic?

I blame the developers. They simply spend too much time on the appearance and feeling of the game to bother with AI scripting. 

Halo Reach on legendary...thats all I will say lol.

I solo'd it and it was pretty easy, except when I was spawn trapped by a Skirmisher  with the assist rifle...