Dynamic motion System--a new idea of game character action making

In the game development, before we do the characters of the action is directly in the 3dsmax animation and then put into the game, the character should do which action on which animation. But as the game becomes more complex, the problem with this method of production becomes significant:
1. Every time you make a new game, you have to recreate a set of actions for the character.
2. The movement of the characters is very repetitive, such as flying Monsters, the monster fell to fall are repeated one or two fall action.
3. In order to simulate some physical effects, animators need to spend a lot of time making these effects in 3dsmax beforehand. For example, when the horse is galloping up and down, and the object hit the ground bounce effect.

These problems have been solved to some extent by the recent development of a good physics engine. For example, now that the characters in the game die lying on the ground, there will be no more CS-like bodies piercing the wall. But it's just a matter of solving physics. The character still has no intelligence, and it is up to the game designer to specify what he is doing step-by-step.

Then there was a project at Oxford University, which now became a motion engine called euphoria (http://www.naturalmotion.com/euphoria.htm). From its presentation, you can see that the character reacts automatically as the environment changes, rather than playing a pre-done action as before. For example, to give a character a force, he would step back two steps; give him a great force he will fall; he will go to see and dodge a box and even stumble over it.
The principle of this engine is that the engine has a built-in "behavior (behaviour)" system that, by setting up some environments and events (such as giving him a force, or hitting it with an object), the system will synthesize a number of already defined character actions based on these conditions, and the physical engine guarantees the rationality of these movements. As a result, game makers are exempt from many of the work of design characters, and can make extremely vivid movements of characters.
More simply, it's like a "AI engine" dedicated to character action.
Currently this engine has been used in a famous game--gta4.