but once you actually try to play a game you're invested in and this is how all the dialogue works you're going to realize it sucks.
I can imagine it may not work well if we take any current game and replace it's NPCs and dialogue system with this. But that's not what i expect or hope to come.
It's clear this tech enables new things which are not possible now. So i guess people will play around with it, and then discover some nice mechanics.
And then they design very different future games around those newly discovered mechanics. And we get what we need so badly: New games. Because that's what new tech is good for.
Personally i always hated dialogue heavy games, so maybe those new games are not too exciting to me. In need another example.
How about using AI for locomotion or complex behavior. This surely comes with it's own problems, since we're used to predictable enemies, not smart ones.
For example, imagine we have a bunch of Bruce Lee videos, and after training our virtual character can fight as good as Bruce Lee knowing all of his moves, tricks, tactics, etc.
Can we make Street Fighter as usual with such enemies?
Likely not. Because the player can't get even in options. Even if the player is martial arts expert too, we can not map all the complexity to N buttons on a gamepad.
To compensate in a fair way, we have to give the same skilled AI to the players character. Though, then the player can only have limited or indirect control over his smart character.
In the end we have a new game, but it's not clear how much fun it is too play, and how the whole experience and impressions would change.
Still, we only need some way to have a proper input and feedback loop. With some luck it works well, and older games suddenly feel like PacMan.
This would be the ideal case. But ofc. it's naive optimism. Personally i assume it's very hard to make games work with AI.