Is it something most games do? Perhaps I play different games, but that’s never been my experience - except as I mentioned earlier the rubberband-ai thing in some racing games which I feel is pretty universally hated.
There are lots of examples of this, depending on where you draw the line: Resident Evil 4 adjusts enemy numbers and aggressiveness (and player damage) depending on your health. I’m sure many shooters do something similar.
Skyrim and Oblivion scale the enemies’ level to be an appropriate challenge at the player’s level, a shot in XCOM 2 is more likely to hit if the last one missed, the running shoes in Blue Prince are more likely to give you extra steps if you are at your last, and so on.
There are probably more examples of this than I’ve experienced - I never played Resident Evil. What the Elder Scrolls games do feels different though - as it just autoscales enemy level with player level. That’s not really even AI in the classical game sense.
We’re getting a bit far afield from the topic, but IMO there’s maybe a helpful distinction between systems that balance difficulty – which pretty much all games do to a certain degree – and those that balance pacing, which is rarer.
(Neither of these have much to do with LLMs, IMO)