This is what I and I'm sure many other gamers/gamedevs thought when LLMs/ChatGPT first came on the scene:
Dynamically-generated dialogue. Device-local models designed for games could be trained on the game's lore and given a different style for each NPC, and react to the player's random actions instead of blurting out canned responses each time.
I'm sure if the genre-starting veterans like Richard Garriott or Roberta Williams were still active in the industry they'd definitely want to use something like this. Imagine a King's Quest or Monkey Island where you could literally type or try anything and get a relevant response! instead of just "nope"
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