From the end of the 90s of the previous century the videogame industry has a steady annual growth. Video game as a product can be the result of an individual, a small team or joint effort from tenths if not hundreds of different experts. With todays level of connection through the Internet and new buisness paradigms from big companies which produce programs for development of video games, knowledge and resources are easily available for anyone willing to try their hand at one or more aspects of video game development. Artificial intelligence is a key component in a large number of modern video games. With new free Unreal Engine 5 from Epic Games, this thesis upgrades the first person template project which arrives standard with the program. By adding multiple components the standard package is expanded with characters able to interact with themselves and with the player without additional input. First part of the thesis goes over humble beginnings of the first person shooter genre, and follows the advancements of the systems for artificial intelligence through future titles. Through the important titles it goes through new systems, their logic and their implementation within the video game and observe the improvements of those systems. Second part of the thesis, the project, breaks down the new components added into the package and explains their logic and role within the whole system of a video game. Of the more important components it adds new expanded playing enviroment with the matching navigation mesh, four characters with artificial intelligence which reacts and takes part in combat and a health and respawn system for the player and the characters. Each of the new components has his own role, code and logic of execution, and the thesis goes through them.