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SvennoJ said:

Sorry, I think this is being overcomplicated.

I just mean that, alongside the usual preset dialogue choices like this:

 

There could be an additional free-text option where you can say whatever you want to the NPC. For example, you could tell them to put their dick in a block of cheese, and the NPC would generate a response that fits their personality and tone. Maybe they’d even remember it in a later interaction.

That’s all I’m talking about. Whether that’s done with AI or some other system, who knows, I'm indifferent to the means - but the end result could make the single line response you get back from an NPC a bit more interesting, while making your silent protagonist self insert character, a bit more of a proper personal self insert.