A system, method, and computer-readable instructions for real-time characters with learning capabilities. A plurality of rules are defined in a rules-based system, each of the rules defining a condition that determines a behavior of a virtual agent when the rule is triggered by the condition being satisfied so that upon triggering of multiple rules at the same time, each of the behaviors of the multiple rules whose conditions were satisfied are combined into a resultant behavior for the virtual agent. This resultant behavior is compared with a desired behavior to providing feedback in the form of rewards or punishments to each of the multiple rules based on their corresponding contribution to the resultant behavior as compared to the desired behavior.