bot path is not as much an industry term ... more like a slang that has been created by the mod teams for quake2
when you wrote Ai for Bots (id's term for computer players) you'd have to write a routine which allowed them to basically do what i've suggested and understand the level's layout.
Early attempts of this oftenly ended up with the bots getting stuck because of collision - which is why i tend to stick with a grid collision for bots paths + my collision engine
try not to get Bots, NPCs and Intels mixxed up

Bot is a randomly intelligentised Computer Player
NPC is a set instruction set Computer Player
Intels are learning computer players (like creatures from black & white)
NPCs are good for storyline based things - because you can increase thier intelligence actions by limiting what actions they're capable of and what they are allowed to do.
Bots are better for Multiplyer and such where you need relatively challeneging people like things which wont' kill the CPU
Intels are what i have for Space Hulk, and are truely remarkable things - because they're capable of writing new code routines to allow for thier own new actions if one doesn't exist. And they LEARN from every encounter.
Not easi to develop but something that makes you feel proud you've done a good job about.
Certainly makes the player think alot more than just walk into a room and blast
I've seen someone else game recently which has you pitted against Space Marines themselves (also for a highend PC waiting for specs to come down enough to handle it) - but these guys not only act intelligently as a team, but the they follow the leaders "lead".
The Squad leader will access "you" the players movements, and from how you're moving will decide on the best set peice action. From then say they're split into a pincer (omega - formation) ... well then the closest Marine will take command of that. Those who follow under him will take actions based on his actions ... so if you shoot at them and the temp command takes cover and issues the order for the other to as well, one will cover his back - the next wil look for another place and another will lay down cover fire whilst following.
They will then sit there and come up with a plan of attack between them.
Truely is remarkable to see in action, and something that caught alot of eyes when he was showing it off.
Most amazing thing is, that the whole game is dynamic, because of the fact that it is set as a single campaign on Piscina IV means that you're likely to fight the same men again (who will retreat to fight another day if nessary) and they will have learnt from the last encounter, some will gain leadership skills meaning they're picked more often, especially if they're sucessful (ie no men are killed).
And whats so cool about it is... the mentalities are taken into account. Because Marines will sit there and devise a plan as well as being quite good shots.
Whereas Orcs will just storm you firing in the general direction hoping they'll hit (combined with thier uselessly inaccurate weaponry) actually means you're safer to stand still right in thier sights than anywhere else.
But if they get in close they're masters with hand-to-hand weaponry.
Brainless but damn'd powerful.
probably going to be shown at E3 from what i know ... and something that has had me more excited for the past 3years than any other game in development. It still have 2years to go too
Anata aru kowagaru no watashi! 