Anyway, we never got really "Radiant AI" in the current game, just the schedules.
You seem to be missing the definition of Radiant AI. Here is something from Gavin Carter to help you along. It is from an April 2005 interview with folk from http://www.evilavatar.com/forums/showthread.php?t=1356 :
The "radiant" part just refers to the fact that NPCs will react with their surroundings - so they might examine objects they find interesting, they might go look for food if they get hungry, they'll sit on a bench and read a good book, they'll have conversations with other NPCs about what's going on in the world.
And so they do.
So you can give goals to the NPCs, but they'll achieve these goals in one way only, unless they are scripted to do it other ways.
I think the critical aspect of AI is that an actor pursues a goal. Just give him one and set him loose. Often, simpler is better, as in the case of the http://cs.elderscrolls.com/constwiki/index.php/Escort_Package. To have one NPC escort another, including waiting for the other whenever the other falls behind, just assign him the Escort package with a target NPC and a destination. Concerning multiple ways to pursue goes, we have this generous contribution from MrSmileyFaceDude (one of the Oblivion programmers whose true name I haven't learned).
They can have an NPC "get food at 12PM every day", or they can have an NPC "go to this particular tavern, sit at this particular chair, and eat for one hour at noon 3 days a week; on the other three days you're in this other town, and you eat at one of three different taverns in any available chair at 1:30PM; but on the 7th day you are traveling so you just eat if you can acquire anything (which means that he'll probably buy something at a settlement along the way)". In the first example, the NPC will get food but how he obtains it will depend on what he owns, how much money he has, if he has any weapons, and his AI settings.
I encountered the above quote a long time ago http://waiting4oblivion.com/developer_quotes_offsite.html#msfd64 at waiting4oblivion.com. There are numerous other interviews and developer quotes posted there. If you are looking for Oblivion facts from more credible sources than a stranger in a forum whose capacity to describe Radiant AI apparently begins and ends at "I saw the E3 demo", I highly recommend it.
I guess that because they dedicated time to showing it in action at E3 (Well, it was scripted, but that's another story), they didn't have much choice but to advertise it even if it was not present.
In response, here follows another of waiting4oblivion.com's posted quotes from MrSmileyFaceDude. It concerns everyone's favorite Radiant AI demo, http://waiting4oblivion.com/developer_quotes_offsite2.html#msfd07 :
As far as the bookseller sequence. No, the entire thing was not scripted -- not in the sense that it represents a designer typing in hundreds of lines of script code. In the sense that it's a sequence of events that happen in a particular order, you might consider it scripted, but the way you set up those events, and how the actors accomplish them, is not scripted.
For example, the target practice. All she's told to start practicing (basically) is "fire a certain number of arrows at this target from this location." That's it. There's a bow in the room, so she automatically goes to get it first. There's also a quiver in the room, so she goes to get that. She then equips the items, walks over to the firing point, and shoots a few arrows. The arrows miss the target not because she has been scripted to shoot at points away from the target, but because her marksman skill is low.
That's the difference. She's given a basic goal, and figures out how to accomplish it based on what she has available to her and her stats.
The sequence is a set of examples of the kinds of things you can do with RAI -- including grouping a sequence of AI packages together to produce a tight, deterministic sequence of events.
Schedules are not Radiant AI. Having a NPC do a schedule is something that has been done for a very, very long time in many games using a 24 hour cycle. (Some of Ultima's games, Harvest Moon, one of the Gothic games, and others I do not remember)
Speaking of Ultima and the Sims, we have this report from an October 2004 Oblivion preview by Allen Rausch of http://pc.gamespy.com/pc/the-elder-scrolls-iv-oblivion/558955p4.html:
The game sports a new "Radiant AI" system that Howard says is best described as a combination of Ultima 7 and The Sims.
It appears the Bethesda team may also be aware of what came before.
Well, the Radiant AI we have are NPCs looking at walls inside their houses, wandering aimlessly in the districts or drinking in taverns.
There probably is some confusion in these forums over the difference between what the AI is doing and what an NPC is seen to be doing. Todd Howard talks about it in Fallout 3's http://fallout3.wordpress.com/articles/official-fan-interview-ii/. In short, Todd explains how what some players perceive as a flaw in the AI isn't a flaw in the AI at all, but is only an absent or awkward animation.