Not to mention the current token cost.
Not to mention the current token cost.
I understand that in multiplayer with strangers it would be a problem because you could affect other players' experiences, but in a single-player game I don't see this as a big issue, as long as the NPC doesn't spontaneously bring immersion-breaking topics into the conversation without the player starting it (which I suppose could be achieved with a suitable system prompt and some fine-tuning on in-lore text).
If it's the player that wants to troll the game and break immersion by "jailbreaking" the NPCs, it's on them, just like if they use a cheat code and make the game trivial.
AI is great for getting tasks done where you can pull the information you need out of the slop. For quality immersive entertainment it's not there.
> Not to mention the current token cost.
You of course have to train the AI from ground up and on material that is as much as possible only related to the topics that are in the game world (i.e. don't include real-world events in the training data that has no implications in-universe).
Answer those two questions and you will realize why your idea doesn’t work.
So I don't think the necessary amount of text that you need to train the AI on is as insanely large as you imagine (but of course nevertheless a lot of texts have to be written - this is the price of having "much more dynamic" AI characters in the game).
I doubt there's telemetry in the elder scrolls games, but I'd love to know how many go around the world exploring everything the characters have to say, or reading all the books. How many get the lore in secondary media, wikis or watching a retelling or summary on youtube. On a certain level it's important they're there as an opt-in method to convey the 'secondary' world lore to the player without a "sit down and listen" info dump, plus give the impression it was written by someone so these objects would would exist organically in the world or certain characters would talk about those topics, but I wonder how much of the illusion would still be there if it was just each book having a title.
Games is one place where running local LLM's is a no-brainer.