Pretty cool, but it seems like this wouldn't be as exciting as the demo makes it seem for a real game until LLM grounding is better solved. Until then, the dial

Pretty cool, but it seems like this wouldn't be as exciting as the demo makes it seem for a real game until LLM grounding is better solved. Until then, the dialogue can only be fancy approximately-correct window dressing on top of the game engine which isn't open-ended enough to make use of the LLM's inventions. Instead of your NPC saying "I heard there was a dragon in Whiterun" over and over again, you can have "I heard there was a dragon in Whiterun", "Did you hear about the dragon in Whiterun?", "Someone told me they were in Whiterun and spotted a dragon", "I heard nobody saw a dragon in Whiterun[sic]" etc. Cool for what it is, but not much of a game changer until the generated dialogue can actually change the game.