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You can still scale up the Power Game/Noita mindset to larger games, with pretty good results. Teardown is a very fun current-gen title that combines physics and voxels to create a sort of fully physical world to interact with: https://youtu.be/SDfWDB1hGWc

There's still a ways to go, but I don't really think AI will be required if game engine pipelines extend PBR to destruction physics. The biggest bottleneck is frankly the performance hit it would entail, and the dynamic lighting that is inherently required.

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