Who cares? These aren't actually people, you know? NPCs saying dumb things doesnt mean the AI is bad.
Im also sick of people saying things like "well, theres still six months in development". Look, cant you people just realize once and for all that this is a problem that simply doesnt have a solution right now? You know how many variables would have to be considered for NPCs not to say weird things in weird contexts? This is simply a side effect of them having this kind of behavior, its bound to not be perfect. Its impossible for AI to conceptualize in such a way that he knows not to say "I heard something" when there was a guy killed in front of him. Its a GAME! Technically, there is NOTHING in front of him!
Well pretty much everything you just said is wrong but ok.
Yes things are technical but that is game development. It isn't a matter of making the AI "conceptualize", it's a matter of registering the NPC as dead and then the other NPC registering this in his 'line/area of sight' then having a 'Array' of phrases to say which don't involve stupid things. Not too tech man.
If you bump into someone in say GTA4 they will register this then choose at random a phrase from their predetermined 'someone bumped into me' word array.
NPC IN CASUAL MODE> NPC REGISTERES DEAD BODY > NPC GOES INTO ALERT MODE > NPC CHOSES RANDOM PHRASE FROM CASUAL TO ALERT ARRAY DUE TO DEAD NPC > NPC VOICES PHRASE > NPC SEARCHES FOR PLAYER
NPC's do have a tag and can recognize dead body tags that is how they search them for goodies.
In summary different phrases for different needs. Don't put stupid ones in.
I think the best we can hope for is that Beth hasn't recorded all the speech yet and this was placeholder.