this is the next step. superior human like ai will be a minute. but the living breathing world where things happen that have nothing to do with you already is in some games on a very low level. you see these open world games where people are walking around, driving, etc.
what needs to happen is that they need to take this the entire way. if i follow a CPU pedestrian on say GTA7. I want to see this lady go out for a morning jog, put the headphones on, sometimes receive a call from her husband at work here the convo if i get close. watch as she finishes her jog. goes get some coffee, walks back home, showers, drives out the driveway, heads to work and actually works in one of those downtown office buildings. to pull this off for say 5000 cpu peds. you need to have them running on separate CPU's with their own Ram and probably their own harddrive. i know that sounds crazy but think about it. its like they are playing their own role playing game, while you're playing yours. just so happen you're user controlled. it can be a game where you can choose to control ANYONE in the game or add yourself to it. it needs that cpu power to know how to react to environmental changes and random like occurrences. It also needs the separate hard drives so that the cpu can save its own memories. so each ped knows what it did earlier or what happened to the world earlier and how all that goes together for the present time.