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JEMC said:

Ubisoft shows off AI-powered 'Neo NPCs' at GDC: 'It could be the start of a fantastic paradigm shift,' but let's be honest, it probably won't
https://www.pcgamer.com/software/ai/ubisoft-shows-off-ai-powered-neo-npcs-at-gdc-it-could-be-the-start-of-a-fantastic-paradigm-shift-but-lets-be-honest-it-probably-wont/
Ubisoft unveiled a new project called Neo NPCs today at GDC, offering an early look at its "first player-facing generative AI (GenAI) prototype that could transform the way players interact with non-playable characters (NPCs) in videogames."
>> I was curious to see out which company would be the first to show a demo with AI, and I’m not surprised that it’s been Ubisoft.

Given this is a prototype, I'm quite impressed, it recognizes spoken language and meaning of it and responds to it (video below)

https://volume.vox-cdn.com/embed/63b3a12c4?playing=false&loop=true&placement=article&player_type=chorus&tracking=article:middle