It was a surprise to some players when Ubisoft announced that some of the dialogue within its games would be written by artificial intelligence, leading to a negative reaction from some players. The application of artificial intelligence to narrative in gaming enables some really interesting possibilities, and one of the best examples is the Inworld mod for Mount & Blade 2: Bannerlord.
As a result of this mod, stories and characters play an important role in this game in a much more complex way than they do in most games. There are a number of changes to the game that make it possible for players to independently communicate with virtual characters without having to anticipate their response.
A character who is interacting with you using artificial intelligence is able to respond to your question or statement by responding back to you with a unique answer based on what you typed yourself. You should be able to get realistic and believable answers from your characters if you ask them about things within the context of the story and the world they are in within the story.
Characters in the game remember what you said and did during the game, where they are, the position they have within society, how they appear and how they dress, what the latest rumors have to say about them, etc.
GPT
The artificial intelligence (the popular GPT) that processes all your questions and statements, creates an answer based on the information you provide.
By doing this, all of the text entered will be sent to the Inworld servers and a response will be sent back to you in the game. As a result of communicating with a GPT chat bot, you are aware that the answers are not available at the exact same second, but that is the reason why it can be unpredictable and interesting at the same time.
The process is not without its restrictions, of course. In terms of gameplay, the main thing to note about the Inworld modification is that it doesn't do anything to change the way you play the game in any way. It's only there as an interesting addition to the game, without having any effect on the way you play.
Despite the fact that you can ask the characters all kinds of questions and get all kinds of answers, in the end it is just a bunch of chatter that has no impact. While it may not be great for all types of games, even as it is, it shows great potential for some types of games.