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Years ago when I was a bit obsessed about the Holy Grail of a living & breathing CRPG world the approach that seemed most promising to me then was having an expert system style AI module running on top of the complex but mechanical and boring low level simulation. This GM module would then find and tie together predefined hierarchical abstract patterns from the engines event log, adding some narration and meaning to it all and slightly nudging things along to some hopefully more interesting and meaningful paths.

I have been thinking that the current LLMs might actually make something like this more feasible, a kind of an GM in a Chinese Room that translates game events in to potential narrative arcs that the player is then free to follow if they wish. As the LLM's actions would be both inspired and limited by the game engine this would probably also tone down the problems with hallucinations and slop.




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