I know of at least two 'games' that are similar in scope and idea, these are "Serious Games" in that they're used by particular groups to estimate and evaluate the movement of individuals and to develop tactics that humans might not have thought of yet.
Simplistically speaking; agents within the game are 'trained' that it is a bad thing to get killed and a good thing to kill others, so through a number of iterations of simulation they develop tactics that engage each other that has red beat green, or green beats red, they put the AI against humans to see if human factors defeat the tactics of the AI, and when they're satisfied that the AI tactics could work in reality... they extract the tactics and teach these approaches to humans and put them in the same scenarios in-in the field training environments.
The point? Training animals in the simulation that you're describing isn't too far from the sims that i've seen, meaning from that perspective that its a reasonable concept (its been done before, for example), wasn't immediately abandoned (is in use today), and has applications ongoing (who knows you might break through with a K-9 Bot that is more than just a jumping puppy).
I would definitely prototype something, but recognize that AI is not a simple topic and will be tough, there are a number of books on the topic of developing AI, and Neural Networks are just one way of doing machine learning and has lots of jargon associated to it, lots of interesting math, and some mindbogglingly strange implementations from a casual observer perspective.
Sorry i just thought i'd add...
I'm sure that there's still people out there today playing those old CATZ and DOGZ games, and would probably sell well (if you got to that point) in the Japanese market and other areas where ownership of animals is limited...