It doesn't have to be autism like dwarf fortress, just an attempt at it. People vastly underestimate just how much you can get away with by faking it. If you don't believe me, go look up the AI in F.E.A.R.(the guy who wrote it also wrote some papers on it, easy to find) -- it was basic as shit, but because it gave the appearance of being smart people actually believed it was really advanced.
Enter an area(dungeon, city, ...), randomly select some existing adventure parties(or create appropriate ones), put them in the area if it's appropriate. Maybe you've encountered one of them before and you're friends or enemies. Randomly advance things like quests they've completed or somesuch so they have things to talk to you about or phat lewtz to take from their bodies. There is no need to simulate their entire lives, you merely need to create the appearance of it.
Video games are, at their most basic level, an illusion.