The problem with GPT3 / LLM is how uncontrollable they are. Imagine making a detective game - you could prompt AI's with some information to give to the player on questions, but they also might just give complete made up answers. They answer with whatever works - whether it's true or not, which completely screws up a detective game. Definitely possible to make sandbox style games with this in mind though. And there are a ton of possible other applications - ingame AI assistants (like shown in the above prototypes), NPC shopkeepers