developers have been working on this, but it doesn't scale to games in the way you might think. For one, games have to communicate with data centers to process LLMs, so we will still have to deal with the lag of data transmission and processing. The other problem is that, in general, the AI are not very good. ChatGPT has all the hype because it is very convincing, but it does not actually know what it is talking about. Go ask ChatGPT to add up 5 multi-digit numbers and watch it fail at a task that your pocket calculator can complete in seconds. All these LLMs are doing is taking your input and spitting out a response that sounds correct based on how people usually respond to that input. In the context of a game, this means that any dynamic conversation you might have with an NPC would go flying off the rails in ways that would make a game feel broken and/or unfinished. Go watch the video in the linked article and make your own judgment.