When will I see AI dialogue in video games? Imagine a RPG where instead of picking from a series of pre recorded dialogues, you could just talk to that villager. If it worked it would be mind blowing. The first studio to really pull it off in the AAA game would rake in the cash.
That seems like the lowest hanging fruit to me, like we would do that long before we have AI going over someone's medical records.
If the major game studios aren't confident enough in the tech to have it write dialogue for a Disney character for fear of it saying the wrong thing, I'm not ready for it to anything in the real world.