Imagine an NPC that can answer almost any question. The conversation feels flexible until it promises to open a gate the game cannot open. The language suggests an action; the underlying systems do not support it. The player now has a misleading model of the world.
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This is the problem I would investigate before calling generated dialogue more immersive. The relevant question is what the player can understand and accomplish through the conversation, including when it goes wrong.
Define the allowed actions first
In a hypothetical quest, a guard might explain entry requirements, check an item and grant access. Generated phrasing could vary the conversation, but those three actions still need clear rules. The system should not invent a fourth requirement because it sounds plausible.
Separate important facts from decorative dialogue. The required item, its accepted state and the consequence of handing it over need consistency. The guard's tone has more room for variation. Without that distinction, a memorable exchange could also become an unreliable instruction.
Traditional game AI, procedural generation and language generation solve different problems. Putting them under the same label can obscure which behavior is actually being proposed and how it would be tested.
Design the disappointing cases
What happens when the response takes too long? Can the player cancel? If the conversation fails, can they still complete the quest through a bounded menu? If the NPC repeats itself, is the objective available somewhere else?
These cases shape whether the feature can be trusted during ordinary play. A successful demonstration with one cooperative question says little about interrupted dialogue, contradictory requests or players trying to discover the limits.
There is also a pacing cost. Typing a detailed question may suit an investigation game and interrupt a fast action sequence. More freedom in one channel can demand more effort from the player.
Compare against authored dialogue
A useful test would compare the same task using a generated conversation and a smaller authored dialogue tree. Observe whether players can learn the requirements, distinguish optional information and recover from misunderstandings. Ask whether the additional flexibility produces choices they value.
If the generated version creates more words but no meaningful difference in play, the simpler version deserves consideration. Predictability can be an advantage, especially when the dialogue is carrying essential instructions.
This is a design scenario rather than a claim about a particular game's technology. The standard I would use is concrete: the NPC should make promises the game can keep.