I feel like this comment covers this pretty well: https://lemmy.world/comment/25336159

Every time I read something like this I realize just how little people understand how these things work.

The tiniest LLMs you can run on your machine are 1B, those take around 10TB of unrepeatable and well varied text to train. Let me put this into perspective, if you downloaded the whole Wikipedia, you would get 1% of the amount of data needed to train the tiniest LLM you can run. Do you think you can ethically source the remaining 99%?

What kind of game size should we expect then? Or have another “reason” to let a single-player game connect to the internet all the time so it can make API calls to remote datacenters? Isn’t it hot enough? Aren’t we in a bad enough point in time in this planet’s climate and economy?

Not to mention that having such NPCs would become the perfect excuse for the executives to expand the initiative, gradually onto the more regular and crucial NPCs and story bits, because to them, the more they can replace with AI, maybe the more KPI they get to meet and grow even fatter wallets, which is really all they care about - that will likely be coupled with increased pressure on the remaining writers, what with the beloved downsizing and all, rapidly leading to poorer quality. I don’t see how AI slop dialogue lines that definitely won’t be as instant as it is now, because whether it’s a local model or an API call, you’re subject to waiting for the lines to generate and make it to you.

There’s just no angle where even this case of only having AI take over backdrop NPCs is justifiable. The little fun that is poses is only appealing because of its novelty, but it won’t lead to a revolution in engagement and rich worldbuilding or interaction that would make the resources wasted make any sense.