Update: Enemy AI
We've been spending most of my time working on the Enemy AI, trying to make the combat fun and engaging as though you're facing another real-life player and not just a bot. Enemies will be assigned different orders like Guard, Patrol and Hunt which will determine their behavior and how they react to you and the environment. We've also implemented a Finite-State machine system for the enemies so they can do stuff like go grab health when their life is low, grab a better weapon if they see one, and investigate things like explosions. We'll create a video to show it all in action so stay tuned.
If you want to learn more about Finite-State machines and how the system works then check out this link: http://gamedevelopment.tutsplus.com/tutorials/finite-state-machines-theory-and-implementation--gamedev-11867
Update: Level Editor
We've also created an easy-to-use Level Editor that we plan to release along with the game to allow players create their own levels and upload to the community website for others to download and play. The attached picture is an example of a quick snow level we created in just a few seconds. The Level Editor will allow you mold the terrain, pick skyboxes, setup weather (rain, snow), position props, items, weapons, vehicles, position enemies and assign orders, and much more. This is the same Level Editor that we'll be using to design all the story-mode stages.