Maxwell's Demon
Arcane
You're really selling the technology short. GPT-3 doesn't just generate language, it can also be used to interpret language.I really dislike the approach of people who think about writing as a content creation process. This mindset, especially combined with the obsession about being productive leads to thinking that more is better and flooding readers with useless stuff. The strength of writing lies in it's relation to reality, not in as many worlds content producer can vormit. This is why popular tropes often don't work. They were originally integral parts of better works, that fulfill some role within their context, but lesser author rips them apart and they stop working.
AI will let you give detailed verbal instructions to NPCs. It will bring about a new kind of user interface.
That's an amazing assistant for disabled or old people. However, the fact that the robot is able to recognize simple commands, like move object A to place B or remember previous commands does not make it a good storyteller.
GPT-3 just generates and interprets text. GPT-3 needs another layer of AI to supervise it in order to generate complete stories, much like how a second AI layer interfaces with GPT-3 in order to direct the robot's motions. Keep in mind that a video game NPC functions in an analogous way to the motion of a physical robot, but NPC functions are far simpler to implement due to the abstraction of a virtual medium.
There's already a product called NovelAI out there that generates stories that is still a bit rough around the edges, but with the rapid pace of this field's development right now, NovelAI could become capable of producing commercially viable novels in as little as a year's time. That is so long as NovelAI doesn't fall prey to what is becoming the most common pitfall in AI development: getting lobotomized due to normie outrage. Who could have expected AI developers to be a bunch of spineless cucks with zero pride in their own work? Well, that's an issue for another thread, really...