Typically he means following a pretty simple deterministic path.
Hero enters room doorway > Trigger 4 guards who walk down a path towards him > If hero appears within x amount of pixels then attack. (take no cover, do nothing dynamic, and just wait to be killed)
Hero enters middle of room > Trigger 4 guards who walk down...etc
I believe F.E.A.R. has regarded as having excellent AI that dynamically worked against the hero. If he had a shotgun they'd stay back. If he made noise they'd rush him. If he was quiet, they'd wait. Decent writeup here:
A lot of players really want that level of AI in their games. I can't say I blame them. Its a completely different experience. Of course, cheap/free multiplayer and co-op kinda solves that problem or at least makes a big investment in AI a disincentive.
Almost no combat game has true IA.