That is an issue for the mostly transactional NPCs that make up the majority of NPCs in RPGs. But consider the case of the companion NPC. If I travel with Batu

That is an issue for the mostly transactional NPCs that make up the majority of NPCs in RPGs. But consider the case of the companion NPC. If I travel with Batu the Hun and meet Zaya the Hun Slayer I want to be able to ask Batu if I should kill Zaya on the spot or should entertain his offer. That kind of stuff is extremely valuable both for the connection between player and companion and to provide an in-world perspective on the events you witness and the actions you take. But it's also extremely time-intensive to script. It's also very low stakes, it is essentially small-talk. And with some careful design you can limit it to short exchanges with AI-provided dialogue choices and have it distinguishable from scripted dialogue that advances the story