Did the OP really mention Wizardry 8 as a good example of AI? Must not have played the game I did (about 10 times)... they just walked at you and attacked when in range.
The best shooter AI I've seen has to be the Unreal Tournament series bots. There really isn't anything special about the actual AI coding, but placeable points in the map editor like "Good sniping spot" made them feel more like human players.
Far Cry was decent, but the AI lacked situational awareness, which made them look like puppets at times - like when 5 enemies would all take the same dumb path coming toward you, ready to be mowed down.
I hate to say it, but the Elder Scroll games probably have the best AI, which isn't saying much. The NPCs all have a schedule and interact with each other while on their daily routines (too bad the voice acting sounds wooden with strange pauses, and the same phrases over and over). When you think of designing that for a city, without driving the player mad (most of the time), it's pretty impressive to handle all those actors so well (at least logically, not naturally).