What is game theory? How is it important in AI?

Game theory is a logical and scientific study that creates a model of how two or more rational players could interact. Each participant believes that the others are reasonable and have the same degree of knowledge and comprehension as they do. In a multi-agent situation, participants interact with a given set of alternatives, which implies that one player’s choice influences the choices of other or opposing players.

Game theory and AI are inextricably linked and complementary. Game theory is frequently utilized in AI to allow some of the essential skills necessary in a multi-agent environment, where several agents attempt to interact with one another to achieve a goal.
Various popular games, such as Poker and Chess, are logical games with specific rules. To play these games online or digitally, such as on a mobile phone or a laptop, one must first develop algorithms for them. And artificial intelligence is used to implement these algorithms.