I may be crazy to think this, but why isn't there an AI sort of toolkit that can used for a variety of games. Something that can start as very basic but be expanded on based on whatever unique gameplay elements the game has. It would be like the speedtree of AI.

From your title you make it sound like the whole industry is abandoning AI in games.
I just want to point out a few major games that use somewhat advanced AI for enemies:
Mass Effect series
The Elder Scrolls (Morrowind, Oblivion, Skyrim)
Borderlands + Borderlands 2
Path of Exile (mmo-ish)
Defiance

There's even a mmo (or coop rpg depending on how you want to argue it) - Guild Wars 1 - that had full bots for combat (npcs you could take with you in lieu of real players)
Most other MMOs also have, if mostly simple, AIs for the enemy mobs - the AI for boss enemies is usually more complex)

If we're talking strictly the modern day shooters of the Battlefield, CoD, etc, then you may have a point - but I think that's a minor part of the entire gaming industry. I see those games these days as a Counter-Strike type games of quick player v player matches.
I think it's far from the truth to say that bots in general aren't used anymore.

Sorry I wasn't being clear, yes I am talking about Modern Day shooters in traditional multiplayer modes like team deathmatch, CTF, capturing control points, stuff like that.

I'm surprised nobody said that one reason why major FPS games don't include AI bots anymore could be to encourage people to get on-line (and since these days everything goes through their servers for the purpose of matchmaking, it can double as some sort of DRM).

Also probably because making a good AI bot takes effort and there aren't enough resources within the budgets to allow it (they'd rather push more budget on real multiplayer than on AI bots).

Hmm, good point, Guess importing the AI from single player campaigns to multiplayer bots isn't good enough...

It's because "everone" has a decent internet connection now. Bots are not really needed anymore (sure there are exceptions, but these are, well, "exceptions" ).

I don't know about that. There seems to be conflicting articles about people having internet.

Here is an article that supports you claim:

http://gigaom.com/2012/09/04/90-of-us-households-with-computers-have-broadband/

And here is an article that says otherwise:

http://www.ign.com/articles/2013/04/24/study-us-internet-speeds-still-rank-low-on-global-scale

Plus, you here people complaining about the rumored always online DMR on the next Xbox console, which suggests that people still don't have the internet capabilities of say.. South Korea. It's pretty ironic though, with multiplayer and social media being very popular these days, you think people would not have a problem with an always online function.

Disclaimer: I am one of those people who do not have high speed internet on 24/7 but do my online stuff on wi-fi hotspots. Due to these two conflicting reports, I cannot tell if I am in the minority or not.

If your internet isn't very good now a days odds are your not buying games either, or paying for memberships. So there isn't a point to catering to them because they don't have as much spare money to spend on video games.

If your internet isn't very good now a days odds are your not buying games either, or paying for memberships. So there isn't a point to catering to them because they don't have as much spare money to spend on video games.

I see what you are saying but Its not always that case for the general population. While we do have internet access, it goes on and off just like that. It happens sometimes in wi fi hotspots as well. We do have enough money to buy games and pay for internet but technology itself is imperfect (ie: Simcity's and Diablo 3's Launch as well as internet going on and off in general). Sadly, the U.S dosen't have the best infanstructure in the world; rural areas may not have the best internet infanstructure.

Besides, you will never know if a hurricane or a tornado destroys your internet acess. I remember while I was vacationing in long island, a storm hit the area and disrupted the internet. Random stuff happens you know and we deal with it.

Despite the tech issues, I did find a way aound it. I recieved a ipad as a surprise gift and it can play multiplayer games. I take it with me to college campus and use the Internet there to play multiplayer. I am paying for it's internet via my tuition so it makes more sense for me to play multiplayer over there than at home. There internet connection is way better than ours

The fps project blackout has a bot mode, as well as combat arms and I think crossfire has a mode. But its co-op only- you can't team up with the bots. However I agree i do find it annoying to not have bots to train on so you can get used to the rotation speed in the game and such. I would imagine part of the split screen disapearing is because game makers wanted to make games look stunning, and thus didn't make it so it could render with 4 cameras,

Yeah same thing with Mass effect 3's multiplayer. But I actually like Co-op play, especially couch co-op. good times on Halo 1 you know.