Theoretically, I think AI used to generate content within parameters would be pretty interesting; like procedural generation, but more so. NPCs could have more realistic, fully-voiced conversations with you and with one another that reflect the state of the world and actions you performed; landscapes and creatures could be more realistic and fantastical; side quests could be generated within some parameters to fit your play style or your character’s build; faraway locations that aren’t a part of the main storyline could be generated as you explore them rather than built by the developer. It could be used to make a world feel more expansive, but also more personalized, while simultaneously freeing up developers from the pain of crunch.

In reality, I don’t think that modern LLMs or diffusion models are well-suited to such a thing, and AAA companies are more likely to use it for more efficient microtransaction monetization and cutting development jobs anyway.