The AI of tech is only as advanced as "shoot at thing that moves in this area." Or "Shoot at thing that looks like this in this area." It's not advanced enough to do hardly anything on its own. Layering the most advanced AIs we have we would have a robot that could, if given the command, search out a person from a massive crowd of similar looking people, drive through a long maze to where they are if they don't move, and then shoot them. It would have to be given the order by something with an actual will, however.
this would be most akin to drones i guess except this is misleading the users by presenting itself as a game.
as i recal in gundam wing that guy(i think zechs) was so anti remote controlled suits because it takes the human element out of war which leads to more heinous acts or something. this would lead to the same thing i suppose.
You can just declare an area hostile if I recall. Then it's all fair game and soldiers get commendations for kills and stuff. And on the IR cam, a human is just a white blob.
And now imagine a war, where robots fight against robots controlled by humans ... the outcome would more likely depend on the countries financial possibilities (you die "in game", no problem, we built over a million+ robots anyway <=> you died, we only got 1k robots left ) and then the human soldiers will be terminated by the robots of the financial superior country...