This is a list of foundational literature relevant to AI based games. As such it is a short list, limited to the absolute necessity.
General AI - foundational
Russell, S., & Norvig, P. (1998). Artificial Intelligence: A Modern Approach (International Edition) Pearson.
Forbus, K. D. (1994). Building Problem Solvers (Artificial Intelligence). MIT Press.
Conceptual/Philosophical approaches to AI
Agre, P.E. 1997. Computation and Human Experience (Learning in Doing: Social, Cognitive and Computational Perspectives). Cambridge University Press.
Dennet, D. 1987. The Intentional Stance. MIT Press.
Simon, H.A. 1969. The Sciences of the Artificial. MIT Press.
Games - foundational
Caillois, R. (1958). The Definitions of Play and The Classification of Games. In K. Salen & E. Zimmerman (Eds.), (pp. 123–155). The MIT Press.
Huizinga, J. (1971). Homo Ludens. Beacon Press.
General Game Design - Foundational
Fullerton, T., Swain, C., & Hoffman, S. (2004). Game Design Workshop: Designing, Prototyping, and Playtesting Games. CMP Books.
Salen, K., & Zimmerman, E. (2001). Rules of Play: Game Design Fundamentals. MIT Press.
Bates, J. (1994). The Role of Emotions in Believable Agents.
Mateas, M. 2003. Expressive AI: Games and Artificial Intelligence. DiGRA (2003).
Wardrip-Fruin, N. (2009). Expressive Processing: Digital Fictions, Computer Games, and Software Studies. The MIT Press.