Namely, the dialog would still be fixed, where there's a pre-defined flow of the conversation and fixed set of facts to deliver to the player. But the LLM could generate variations on it each time so it's never exactly the same twice. And it could add more character so the NPC gets frustrated if you keep asking it over and over. Or, it tries to dumb it down for you. Or, it gets sick of you and just tells you point blank: Look, you need to know XYZ. That's all I have for you.
Namely, the dialog would still be fixed, where there's a pre-defined flow of the conversation and fixed set of facts to deliver to the player. But the LLM could generate variations on it each time so it's never exactly the same twice. And it could add more character so the NPC gets frustrated if you keep asking it over and over. Or, it tries to dumb it down for you. Or, it gets sick of you and just tells you point blank: Look, you need to know XYZ. That's all I have for you.