People on lemmy usually only ask questions in bad faith, especially when AI is involved in the subject, so I assumed that was the case.

I'm imagining a large RPG in the vein of the Elder Scrolls games where you can walk around a town and engage/be engaged by a random npc who would be capable of reacting to current circumstances fully dynamically. I think it would be fairly interesting if the npc could pick up on various things the player has done or is doing, their gear, or even various world events, and have a fully in character reaction to those things.

For example, Cyberpunk 2077 has some romance options, and you can have some text or in person interactions with the character you choose to romance, and some of the dialogur options do have things that reference recent events in the game. The problem is that there are just a few of those, and the responses they created are fairly generic. It would be pretty neat to see less canned and more dynamic responses and engagement with the character.

I acknowledge that those are pretty minor parts of a game and that LLMs are pretty expensive technology to achieve something very unimportant though. Plus, it would need extremely tight guard rails to ensure the responses stay universe and character oriented rather than whatever hallucination garbage an LLM might come up with.