As I'm imagining it the NPC LLMs would be trained exclusively on the in-game lore as well as given system prompts to shape what they can and cannot say at any g

As I'm imagining it the NPC LLMs would be trained exclusively on the in-game lore as well as given system prompts to shape what they can and cannot say at any given moment. something like --- "You are Bob the Farmer. You grow rutabegas in the Kingdom of Foo. You are a cautious, fearful man. Several years ago your home was pillaged by King Foo and your family was taken. [blah blah blah several more paragraphs of biographical information] Your primary motivation is to get your family back and keep the farm going so that you don't starve. Last week you saw a mysterious group of figures in the woods who appeared to be headless. This is bothering you, along with the stress of your missing family. You wish a band of strong warriors could investigate, especially if they have a necromancer among them. You may discuss any of the general world knowledge in background_lore.txt You know nothing about the following topics: [[insert list of plot points that haven't happened yet or are unknown to him]] and will become confused, fearful, and slightly belligerent when asked about them." --- You could of course update the system prompts for each character as the events of the game progress. It would be a lot of work to keep these system prompts updated and relevant, for every character, as game events progress, but I think some of this could be handled by some kind of inheritance system. Suppose "Bob" lives in "Town A", which is in "Kingdom B." You could probably define a lot of things at the Town/Kingdom level. Like suppose "Kingdom B" is plagued by orcs, but "Town A" is kind of a citadel that is safe against orcs. "Bob"'s system prompt could inherit a lot of concerns and knowledge from "Town A" and "Kingdom B"... the system would not have to be strictly hierarchical either.