Yeah, AI NPCs is one thing I'm looking forward to, if they're done properly - after all (and this is something that most people either forget or don't know), a lot of early RPGs from 80s (at least made in west) had text parsers that you could use to ask NPCs about all sorts of thing you can think of. Of course, those NPCs were dumb and scripted, so interaction with them was very limited.
"Holly Grail" of NPCs that you can talk to is not new and comes directly from TTRPGs were DM/GM represents world and NPCs in it. AI is ultimately tool to try to replicate that experience in video games. Of course, this will (hopefully) change how those games are developed, with VG RPGs becoming more akin to their tabletop cousins, with actual "smart" NPCs, instead of scripted quest dispensers with quest marks hovering over their heads. thus interacting with them becomes actual "social encounter" from TTRPGs, instead of "just give me the quest/info" thing of VG RPGs.
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