I've been looking into open-source solutions for AI-generated NPC dialogue. I sorta have this vision of experimenting with procedurally generated settings for a game featuring space or planar travel.
Right now what keeps it from happening is the hardware. It takes about $3000 worth of GPU power to run the best open-source models with any efficiency. Obviously, this doesn't yet work on a commercial scale for indie development, but it's exciting to imagine the future possibilities.