Found this article on IGN about the AI in the upcoming Grand Theft Auto 3 from the folks at DMA. On the new pedestrian AI:

Part of the AI's job in this game is to keep you from doing what you do best – which is basically to break the laws in all of the worst ways – to steal, murder, and destroy. Take an afternoon killing, for instance. If you murder a person in this game, and a ped sees you, he or she will run to the nearest phone (I’m not sure, but they may actually have cell phones, too), and call the police. Now you have a new problem on your hands.

It looks like this game has undergone some major changes since its last incarnation. The game is now fully 3d and can be played from 4 different perspectives (with at least one of these being first person/behind the steering wheel of the car you're in). There is also mention of the police calling in helicopters and even SWAT teams to try and catch you.

Gone also is the old answer-payphones-for-jobs style of play as jobs can now be picked up from numerous different places. If you steal a taxi cab with a passenger in it, the passenger might even offer you a job!

You can read the full article here. IGN have also done an article on the "living city" inside of GTA3 which you can read here. At the moment the game is scheduled for release on X-Box and PS2.

GTA is cool, but im sceptical about how well this'll work...

who cares?

multiplayer is the only way to play it