An NPC has scheduled goals. He has some flexibility in how to achieve a goal. His decision-making process approximates human decision-making processes.
When it is time to eat, an NPC will check if he has food in his inventory. If he does, then he will eat it. If he has no food in his inventory, then he may check his environment to see if there is food he can pick up. If so, and if the food is not owned by someone else, or if his responsibility is low enough that it doesn't matter who owns the food, then he will pick it up and eat it. If he has no food in his inventory, and there is no food to pick up, but he has gold, then he will buy food from someone who sells it. If there is no vendor immediately on hand, the NPC will travel to a vendor, providing that there is a vendor within the allowed roaming distance set in the NPC's Eat package. If there is no food to be had, then the NPC will just go hungry. An NPC with a low-enough responsibility may decide to pickpocket food from another NPC.
The reason it is called Radiant is that it radiates outward to the NPC's environment. An NPC is aware of items and other NPCs around him and he reacts to them. I'm sure that glossy marketing is another reason for its name.
Yes thats is, thats was good feature adding needs thats will motivate NPC to complete schedule with all options thats placed around, I test Radiant AI some times with such tasks, NPC able use lock picks to open locked doors, search and take weapons when need protect them self, search and take potions with restore health properties to cure wounds, I create scripted spell thats force Scamps search for items around collect them and them open inventory for player.
Radian AI is good feature but need some scripting enhance
Like in this mods
Put it in its Place - Enhanced Grabbing
http://www.tesnexus.com/downloads/file.php?id=19847
And most of interesting NPC react on my acts in proper way, http://www.youtube.com/watch?v=xv49LK3lytI but they http://www.youtube.com/watch?v=8oujSeIeqhM, they much http://www.youtube.com/watch?v=h2ZLWLXNUZM they tryhttp://www.youtube.com/watch?v=L8gvcTLqzns and many more features, http://www.youtube.com/watch?v=m0K4xkCRLYI, look at others videos and you will agree with me thats really awesome mod thats enchant Radiant AI with some scripting.
Duke Patricks - Near Miss Magic And Arrows Alert The Target
http://www.tesnexus.com/downloads/file.php?id=16150
Casting spells around NPC and shooting around make AI react on such acts in for of alert, AI is aware about surrounding more
Duke Patricks Fresh Kills Now Alert The NPCs
http://www.tesnexus.com/downloads/file.php?id=18065
NPC react on fresh corpses if found them
Phitts Phighting Phixes
http://www.tesnexus.com/downloads/file.php?id=32651
Expand detection range of AI in combat
Allows more actors to follow the player through a loading door in combat
Reneers Guard Overhaul
http://www.tesnexus.com/downloads/file.php?id=5977
Greatly enhance guards AI and crime system work
Todd shows us in E3 demo thats Radiant AI can be expanded with scripts, why they don't do thats in game?
Some additional scripting will help much to remove flaws of just Radian AI logic, but they don't use it.