Quote from VilhamYou can't shift AI calculations etc to "the cloud" without severe lag, On my uber german internet I have a ping of around 30ms to speedtest, to any game server that is probably about the same. That is an entire frame in a 30fps game. So I send the message to "the cloud" then the cloud has to process my AI, then I have to receive the message back. That is probably 45+ms for this calculation. It simply doesn't work with current internet infrastructure and it doesn't matter how "fast" your internet is, all that is is bandwidth, something that isn't an issue, the issue is entirely the ping.
It depends on how the game is put together though, surely? Many multiplayer games today have server-based bots, which are almost exactly the same concept: the assets for the NPC are on the gamer's machine, the logic and placement is handled by the server. I don't see how this same concept couldn't be applied to single-player games.
The latency is a definite issue, which is why this kind of thing is best suited to inherently multiplayer and co-op games more than single-player. Even then, it's best off being used for secondary stuff when possible (eg: animals in the game world).