Although this is something that sounds incredible in theory, I imagine that in practice this will hardly happen. And I'm not getting into questions here about the advancement of technology, but simply for design purposes.
A point that everyone needs to note is that the "AI" inside the games has hardly advanced since the end of the 80s, the behavior of NPCs and enemies still follow very basic scripts that are little more than a flowchart. If X, then Y. That's it. And that's not because there are no more efficient or intelligent ways to deal with that problem, but because one of the things that game developers are most concerned with when making a game is precisely its predictability. How will the game world react when the player does X? Or if the player does Y? What if he does Z while charging J during event W? The more variables you put into a situation, the harder it is for designers to analyse how the game will react, and therefore the harder it is for them to create an experience the way they want it to be.
It's not only a matter of bugs, but also of being able to determine the difficulty of certain challenges, to balance the game, to determine solutions. And ironically, the average person tends to think that an AI is smarter when it's doing things that are actually stupid. For example, games where you have AIs capable of "listening", they'll check out a noise you've created, but in the most stupid way possible - basically, they usually go straight to the place, and stop there for a while, making a point of talking to themselves about things like "it must have been my impression". That's not smart. But it creates the impression for most players that the NPC has intelligence, and more importantly, it creates a mechanic that players can use to interact with the world.
These mechanics are quite obvious, predictable and evident just so that the player is able to accurately predict how enemies will react. If the enemy is really smart, he will probably react in a difficult way to predict, and often the player will think that the NPCs are actually cheating. I can't remember which interview I read this, but there was some FPS game that decided to implement a more advanced AI, where the enemies really acted in a group, surrounded the player and looked for more intelligent positions to attack and escape. The result was that most of the players hated the game, and accused the enemies of "coming out of nowhere". The result was that the developers simply tossed all the AI in the trash and went back to the standard behavior and... Surprise! Now the players liked the game.
If all these problems appear only in the way enemies act, imagine then when we talk about conversations?
You will never be completely sure what kind of interaction the player will have with certain characters. Each player can have a completely different conversation, which sounds great on paper, but it's a nightmare from a design point of view. Suddenly, you no longer have any idea if an X player will discover the Y information in a certain place. Because the conversation he had (or didn't have) is just not going to be something "guaranteed" anymore. That way, it's practically impossible to create a coherent story. And worse, you won't even be sure how the AI of certain NPCs could interact with other NPCs - what kind of situation could occur? You will simply create a situation where it is virtually impossible to create a story in the traditional sense, with beginning, middle and end.
I believe that in the future, it is likely that an AI will indeed be implemented to help game creators, but it will not be something present in all RPGs and/or games. Possibly, some open world RPGs, roguelikes, or other open-ended games may try to use things like that. But most traditional RPGs will keep the dialogs pre-determined, perhaps using AIs to create generic NPC dialogs in a procedural way to simplify the work of producers, but not much more than that.
