I know the video is confusing since it was intended to be a material support rather than a self explanatory material. But I still think it shows potential in the sense of how we could develop self adapting game characters using machine learning techniques.

http://www.youtube.com/watch?v=mh_DvxRvGYo

Please be nice with me... it was just a thesis after all :)

Edit: In case someone is curious about this, here is the document: http://pedromelendez.com/dissertation.pdf