There is such a thing as "recursive AI", where conversations with the model alter the model. Remember Microsoft Tay, from 2016? [1] That was a chatbot which learned from its chats. In about 24 hours it sounded like a hardcore neo-Nazi. Embarrassing.
How did that work, anyway? LLMs were not a thing back then.
It's noteworthy that the modern LLM systems lack global long-term memory. They go back to the read-only ground state for each new user session. That provides some safety from corporate embarrassment and quality degradation. But there's no hope of improvement from continued operation.
There is a "Recursive AI" startup.[2] This will apparently come as a Unity (the 3D game engine) add-on, so game NPCs can have some smarts. That should be interesting. It's been done before. Here's a 2023 demo from using Replika and Unreal Engine.[3] The influencer manages to convince the NPCs that they are characters in a simulation, and gets them to talk about that. There's a whole line of AI development in the game industry that doesn't get mentioned much.
[1] https://www.cbsnews.com/news/microsoft-shuts-down-ai-chatbot...
[2] https://recursiveai.net/
[3] https://www.youtube.com/watch?v=4sCWf2VGdfc&