How Game theory and AI related?

A game is the most visible area of progress in the AI system. AI systems could be improved using game theory, which requires more than one participant to narrows the field quite a bit. It serves two fundamental roles:

 
• Participant Design: Game theory is used to improve the decision of the participant to get maximum utility.
 
• Mechanism Design: Inverse game theory, works at designing a game for a group of intelligent participants. Ex. Auctions.