Yeah there is likely still a ways to go before we can run high end modern games plus a local model, but newer nvidia cards are pretty crazy. It’s probably closer than I think

AI could also generate dialogie options for players, though. It could operate as traditional dialogue, with AI generating responses and possible doalogue paths ahead of time so you get a “normal” experience that just changes every time

I think so. New GPUs will be able to handle AI models running locally before too long. I think this will be used for NPC behavior as a replacement for procedural quest / dialogue generation. I have seen a lot of mobile games leveraging this but they don’t seem very good yet. Models need to be trained more specifically for each game I think