It is recommended that you consider using Unreal Engine 4 , or even the new UT that uses a Unreal Engine 4 flavored editor for educational settings much more over UT2004. Unreal Engine 4 is now free and easily integrated into educational institutions. Below is a link to the EULA and Educational FAQ that helps explains how to work with UE4 at schools.
Here is another very valuable doc to help with academic installs.
https://www.epicgames.com/unrealtournament/
Below are also a series of learning resources for working with the AI systems in Unreal Engine 4 which are quite robust.
https://docs.unrealengine.com/latest/INT/Gameplay/AI/
https://docs.unrealengine.com/latest/INT/Engine/AI/BehaviorTrees/QuickStart/index.html
This is the first of a twelve part series in making AI games in Unreal Engine 4.