Avoiding slopification seems to be the main priority, and you would have to have the AI be incorporated into a game it would have to do something that AI is already passable at, otherwise it wont pass that barrier and will get shunned like the rest of the slop.

For example, you could have an LLM act as a character or have a neural net incorporated into the game-ai like how tool assisted DOTA2 competitions work.

I see three main problems, first is that you would need the hardware to run it locally, which may be a hard sell to some people depending on what the game it is, only online expirenes should endebt themselves to AWS, if its single player, its going to lose a ton of sales there. Two, its really hard to convince audiences electrons have feelings, remember Final Fantasy (2001)? Thats what happened last time someone tried to personify a digital construct, and well... It went swimmingly (Microsofts Tay, does not count). Lastly, impact, would a narrative focused title have the same impact of an AI wrote the script? How would you feel after playing through a title like "Papers, please" and when the credits roll it says "script generated by CoPilot"? I feel like it would ring hollow, the feelings would be cheapened by it...

I would be interested to see how this plays out, but im content to support the titles and studios that do things the traditional way.