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I think at first even background NPCs that don't give quests and rewards would be nice. Sort of give everyone a character and let them just babble. It breaks the immersion to hear the same phrases repeatedly. You can still handcraft every important quest and interaction to achieve high fidelity, but I would like random NPCs you bump into to not just repeat things all the time.

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You're more likely to see studios (who want lots of more varied content) use generative AI in the studio, where they might generate and review it before release.

Letting generators run free on the client sets up different kinds of immersion-breaking, where NPC's hallucinate misleading details about the story/world, can be tricked into reciting off-topic absurdities or age-rating violations, etc. AAA studios can't afford the embarrassment of that and smaller designers with pride of craft won't see their signature come through the art in it. Surely, some designers will figure out ways to make it work great for some specific idea, but it's not the best way to use the technology in most cases.

Sounds like there's a ton of money to be had to someone that can solve those problems though. A version of fallout where I can go up to people/things and just start talking to them, instead of picking from a list of things to say? :shutupandtakemymoney:

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