Comment by handoflixue

The problem with modern LLMs is that their writing/creativity skills are still fairly stilted. Like, it's not bad material? But it's stuck in the most common, trope-ladden ruts. Even if you get out of that, it suffers from the fact that every instance will write approximately the same quests.

That said, give it a year or two and I think we'll start seeing some pretty amazing stuff, there - LLM writing has been consistently improving, and I suspect at some point you could just generate quests by simulating a world and having the AI assign quests when it wants to accomplish goals outside of the character's skill-set, or when things go wrong with the economy (someone killed a traveling merchant -> farmer will now pay you to acquire good fertilizer/seeds)