EXAMPLE: in the skyrim gameplay trailer you see the hero in a cave shoots an arrow and kill 1 NPC who is standing directly infront of another NPC, the "still standing" NPC didnt react to the fact that his friend just died infront of him, now i dont mean he needs to cry or moan, but he act like nothing happend until another arrow killed him to!.
that is kind of stupid, they should improve the AI do react to simple things like that.
"reaction AI" should be the priorty, dead body = alert, runing for cover, informing guards/other enemies, or Runing away.
this isnt easy to do but it have been done before in many games. what do you think?