(Video Link)
Artist Karolina Sobecka and software designer Jim George created Sniff -- a computer generated projection of a dog that responds to the actions of people passing by a storefront. Here's how it works:
People on the sidewalk are monitored by an IR camera in openFrameworks. In oF each individual person is isolated and assigned a unique id for the duration of their interaction. Each persons’ position and gesture information is continually sent to Unity3d via OSC networking protocol. In Unity, an artificial intelligence system representing the dog forms relationships with the individuals. He chooses which person to pay attention to, is able to move towards them or back away, responds to their gestures and initiates gestures of his own. Based on the interaction he gets excited or bored, friendly or aggressive, which is reflected in his behavior.
Link via Urlesque | Artist's Website