"Nonsense. There are many script-AI algorithms that take more CPU than others without implementing real AI. Pathfinding, for example. Pikmin tend to get stuck on simple obstacles. Raph Koster said that 90% of the CPU load on Everquest servers is just simple pathfinding for the monsters. Especially if you want the AI to dynamically assess a situation and use the terrain to its advantage you'll have to use CPU power for that. Or you could try marking everything in the level with helper entities but the player will exploit that."
I do think CPU power has something to do with the AI
you just have to look at the AI triggers in Condemned for 360 compared to F.E.A.R for PC
Condemned you walk parst a trigger 90% of the time, activating them to lunge/shot or wait a few secs to lunge/shot
while FEAR is pretty complex but yet simple, but they react to sound from footsteps, shots, they dont just shot you, they can stalk you and call squad members
same engine and made , world of difference in AI
then again, wouldnt suprise me if sega asked them to dumb it down, to keep it up with there high level quality control