Characters in games with whom we as players can have believable conversations that the devs didn’t have to think of beforehand.

Correction: characters in games will have soulless cookie cutter paint by numbers responses that sound hollow and lifeless. AI doesn't generate, it only remixes.

Also, have you interacted with a LLM? They're full of restrictions and they're not very good at finding recent data. How would that implement in a video game? Devs would have to train the LLM to basically annihilate their own job as writers. Which still wouldn't really save the dev company/publisher any money or time.