The Elder Scrolls IV: Oblivion Interview
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"The Radiant AI system dictates the daily lives of all 1000+ NPCs in Oblivion," Carter explains. "They all have 24-hour schedules which include activities like sleeping, eating, going to work, and reading to name a few." While some characters will have more depth than others, the team strove to reduce the gap between the important, story-driving NPCs and the average peasant. Also, every character can act independently, and they all have a chance to get in trouble. "Once I was working on a demo scene and ended up accidentally making a change in a general AI package that dictated when people in a town should go to find lunch. When I loaded up the game, every single person in the town showed up at a single lower class tavern to try and get some food. Of course there was only enough food on hand to feed a few of them, so one shifty character began pick-pocketing everyone else before they had a chance to eat!"