The AI is quite impressive. You have to take care of little creatures called Norns. You have to teach them how to respond to their needs, though they can learn this by themselves and even each other(it's quite fascinating to see one little Norn say that it's hungry and an adult Norn telling it to eat some fruit!).
When they get sick or hurt you can treat them with medical devices. You also need to take care of them by locking doors and creating defensive systems. You have to maintain the population by encouraging them to breed. (If you didn't know how, you can do this by putting a male next to a female and telling him to "push Norn":)).
Before the Norns can speak, you can guide their actions by petting/tickling them to re-inforce good actions and spanking them to correct bad ones. Later you can do this by typing words. Obviously, teaching them to speak is important, and you can do this by telling them what each thing is, or by using an automated machine to teach them.
It's a fascinating game which should provide months of entertainment. If you like virtual-people/creature simulations you can't miss this game. It would also make a good gift for your wife/girlfriend.