What happened with this super cool cloud AI if I try to push the openent car to out of the track... that's the point the AI will be dumb for fast responses.

But we will see how the works.

Might be that it ends up like Dark Souls when my connection does not want to work accordingly (>saving + tossing you to start screen)

If a fast response is needed that the cloud can't compute in time, it will most likely respond the same way as a disk AI would. 

I expect something more smart... auto change from offline to cloud with little notialible ingame difference.

It is not that easy like you say... the switch bettwen Cloud and Disk AI have impacts too... even automatic you will see some weird results.

I don't see how this would be difficult...The AI logic is still hosted on your machine. The calculation for it may happen in the cloud but everything is still hosted locally.

Think of it as being able to calculate additional "if" statements using the cloud...they don't take away the existing AI code already preprogrammed on the disk.

@cablebox... there is absolutely no shadow of a doubt about that.... MS and google are the only 2 companies that substantially invested in cloud technology for more than a decade.... nobody has anything close in infrastructures and when it comes down to software on servers MS has a long time history in that business.....
and they have the investment power not many other have for that because it is one of their core business much like google...

Prolly the best solution, I deem that this could hurt some expiriences though, if suddently the AI behaves stupider, or even worse, the gfx looks worse. Going down the route of potential bugs with the cloud (I doubt these will happen too much in AAA games) it could even happen that something sent out to be cloud-processed never returns and thus causes late pop-ups or something. This will then prolly not be the clouds fault though, but either the devs or your ISPs. I still think that some devs will use the cloud as a rather convinient excuse for some not so wanted features *glares at simcity*.

So all the advantages from Cloud is killed... free up resources in the local machine to use in others things like graphcs... if you continuous run the offline AI in the local machine then you aren't freeing resources for others tasks... no advantage after all.

I'm looking at a scenario that when your internet goes out the game shift everyting to local and you will see even a downgrade in graphics or framerate issues...

I think its up to developers to implement this so it works best for multiplayer, single player and doesn't impact the experience too much.

Lets use Forza single player as an example.

Race starts and the normal car AI is present. After 1 lap of collecting your driving patters, this data is sent to the cloud where microsoft calculates new AI enhancements that are applied to the existing AI and sends instructions back to your Xbox One. The game is running 1080p@60 on your console with no hiccups since these calculation isn't happening on your console. If internet isn't there, this doesn't happen and game still runs 1080p@60...

BTW...why is everyone so fascinated with this "internet goes down" idea? Like christ, my internet goes down once a month for a few minutes tops... Will my whole life be ruined if all of sudden internet isn't able to enhance the game experience for a minute or two?