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 by letting them focus their time (and the game’s gigabytes) on stuff that everyone will see, rather than on the stuff that only a few will see.

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.