I do think there’s a little risk that the stories will enter an uncanny valley (if such a thing actually exists). Dwarf Fortress is a dwarf simulation game that happened to be a surprisingly good story generator. If a game is sold as an AI enhanced story generation game, the bar may be too high, and people might be disappointed. But I think there’s definitely potential.

If nothing else, the potential is really interesting. Who knows what will happen. Maybe somebody will come up with an LLM enhanced version of the director AI for Left 4 Dead or something.