Whoever coded the A.I. back in the original F.E.A.R. must have definitely had good scores in 'coding school'. Some games already had pretty good A.I. years ago, they are rare gems but they did happen. I also remember the Marines in the first Half-Life, compared to all the rest of the enemies' A.I. in the game for some reason the coders decided to go coding bunkers for the Marines. Now, of course, some of those old game examples are... well, old today. You'd look at the Marines in H-L and immediately see their rather slow reaction time and movement in response to threat, etc. Well back in 1998 hardware wasn't the same either.
A decent modern example is in none other than Breath of the Wild, some of the wildlife has pretty good A.I. and react to a ton of conditions from the player and the environment. It's a very small detail but I can throw a rock at a butterfly and contrarily to how it'd "behave" in most other games (I.E. stay there or keep playing its static animation in place regardless of what I do) it flies away and, if lucky enough, it lands some distance away and goes back to its normal idling 'routine'. That, to me, is a sign of care, passion and dedication on the coders' part. It's not that it's anything "complex", per se, it's just that they code a LOT of different types of reactions to different types of conditions in a (imaginable) large list of behaviors. And, ultimately, it is the PLAYER who does the "simulation" part with suspension of disbelief, it goes a very long way in 'complementing' (not quite replacing) actual A.I.; but if you can immerse yourself in a game (like I myself can in Breath of the Wild) you soon forget how 'better' it could be if they worked on A.I. alone for another 10 years and just play a good game.
I don't know the technical shenanigans behind it much but what I do know as a gamer who started on the Master System and grew up with the NES, SNES and Genesis is that to this day there's been only a very small number of games that demonstrated a true, undeniable milestone 'leap' in A.I. behavior (be it in the environment from enemies or A.I. bots or what have you). To come back to F.E.A.R. for an example of such cases, just pointing out that it truly had an impressive A.I. from the enemies (well the enemy soldiers, a bit like the Marines specifically in the first Half-Life). Sometimes good A.I. also come in the form of heavily scripted encounters, it really doesn't HAVE to be 'dynamic' or reacting in real time "like a human would". I can think of scripted Boss encounters in some games, where the bosses would have a set of moves but the A.I. would go with the most appropriate set against a specific attack you'd do, either alone or in a group (happened in some MMORPGs, not sure about offline games but I suppose that at least some specific bosses in series like Dark Souls had something along the line going on at some point).
The gist is that at least for me, "good A.I." is very broad and contextual, and also depends on the actual 'need' of the game for or against the player (I.E. does the game NEED to have good A.I. in it? If it's friendly, relaxing pure-fun game in the veins of Mario Bros then... no, I don't want Goombas making Alexander The Great level plans to destroy the Mushroom Kingdom).