Lo-Fi Games

So I was wondering when the dialogue and factions are in, are the AI actually planned to make decisions based on their character and faction ideals? Will their decisions be based on recent events such as a recent siege? Will characters ever make decisions that would put them at odds with their faction? Like possibly a slaver befriending a prisoner and aiding their escape, or a samurai accepting a large sum of money to open the gates for holy nation invaders.

I understand that Kenshi is trying to push a true dynamic storytelling system but I am still a bit unclear as to how far they can realistically go. And obviously some of these examples are the extremes of a situation but I feel they kind of support my questions.

Just want to tack on something else here. Is there any chance that players and AI will be able to use formations in larger scale battles?

their will be a bit of storytelling but Kenshi is a sandbox game where you make up the rest of the story for yourself.

Formations is a planned feature when armies are added. ( mass combat Skill )

So any idea how the formations/mass combat will work?

nope.
not yet anyways.