I have created a simple character from scratch with pawn sensing, if the player goes in front of the character the character will chase him. The character will enter a running animation when the player is seen. However, the character runs on the spot and does not rotate.
OnSeePawn - Cast To Player (Pawn) - AI Move To Target Actor which is the Player being casted to.
If anyone has setup an AI character to chase them I would love to see their blueprint.