So they allow both, and let you switch functions on the fly? This is confusing.

It would be great if neither one was necessary regarding the currently controlled character so we wouldn't be forced to do one or the other.  It's obvious that the characters that wouldn't be currently controlled by the player would need AI input, but I hope we can also choose to have even the CCC (I think I'll just term that acronym for Currently Controllable Character) have automatic actions anyways for the sake of choice. 

That doesn't mean it would become necessary to have the CCC like that, but just as an option if you're grinding against fodder, farming, or you actually prefer to play like that.  There was something sort of like that in Dissidia.

Well, Yes and No.

Yes so far for the main character, no for the allies. In truth we don't know how much direct control you will have over the allies. But you will at least have a lot more control over them than you would in a game like Kingdom hearts. But why I am not sure is cause there seems to be a heavy focus on the gambit system this time around and they have gone o great lenghts to make them very elaborate and deep. To me that tells me that they want your allies to pretty much fight on their own but to the tune of your preset instructions.

You have a LOT of indirect control over them though, more directly from combination attacks or defence or from indirect commands to do certain things. Like you can have an ally cast fire everytime you cast dispel on a enemy, or maybe they even put like a special way to tag enemies, so if you tag an enemy to be weak to fire your ally can start casting fire spells on those enemies while you concentrate on other stuff. This last bit is not a given though, all we know so far is that there is a very elaborate gambit system and a gambit system is mostly made to manage the actions of your allies without having to filter through tons of menus and selecting targets everytime you want to do something as simple as casting a cure spell or using an item.

Yes this option would be great. Activate the auto system on characters under farming, would be perfect. Boring repeatable tasks wouldn't be a issue anymore. This type of automation would be fine.

The gambit system is an amazing AI controlling feature. Play FF12 if you want to know how it works. It is one of the most elaborate and specific ways of controlling AI and I hope it makes its return in FFXV. It was a joy to input specific commands on so many specific situations for AI party members in FF12. It eliminates the concern of how your party member will react when specific situations arise, like what if someone died, what if someone gets any kind of status ailment, what if the player loses half his/her life, or gets just 10% damage? You can even input specific spells or items to be used in any kind of situation. Almost all situations are available in the gambit system.

Its not really confusing when you think of it. Based on my limited understanding of the patents, its something like this.

• You control only one character directly. And for this character you cannot set gambits for him to carry out per say. However you can set what kinda weapons or attacks he will use in relation to distance, or context. (Tabata referred to this as a Card stack in one of his interviews). When enemy is stuned use this weapon. After an evade use this weapon. When defending against this use this type of guard...etc
• For attacks that have not been set you can manually find them and do them.
• As for your other characters you set gambits for them. And these gambits are based on two factors. Condition and action.
• Conditions can be anything from distance to friends/foe, position from friend/foe, HP of self/friend/foe, action of allies...etc and the you set what actions you want them to do under any of the circumstancs you set in the conditions field.
• You can pause the game mid batle and modify or switch from a collection of gambit presets or change equipment which will in turn change how your allies play.

Either Dragon Age has Gambits too (A better version).