Molyneux says he would have “loved” to have finished Project Milo, the Kinect tech demo from 2009

[Angelus]

Adinnieken said:

Angelus said:
I thought the idea itself was pretty cool. An actual AI you could interact with, that would respond to any dialogue you threw at it. Sure it was relatively simple, but when I first saw it, my initial thoughts were "holy shit if you could integrate this idea into something like a future Mass Effect game, so you could have real conversations with the characters.......*drool*"

Too bad nothing has come of it so far

It was.  Kinectimals actually had the same AI technology built into it.

My guess is that in the future, when developers realize how powerful Kinect 2's speech processing is that they'll begin integrating real conversations.  Though in all fairness, having experienced promptless gaming back in the age of text adventures, I like the way Mass Effect does it.  Having to guess what the best thing to say is and have it work for what you want to do, are two very different things.  I hated Zork for that reason.    Trying to guess what a developer is thinking isn't as easy as it sounds.

But there's an easy way around that. They can just give you prompts/scripted speech options that serve to help you progress through the story, while still allowing you to have free conversations with the AI concerning anything else