That… feels like my memories of playing with an ELIZA clone in 2001. I know ELIZA was really much worse, but the feeling, the blandness of its affective range, is the same.
It's absolutely worth going to https://chat.openai.com/chat and asking it "Write a transcript of a TTRPG session based on the opening to Skyrim" for comparison. You might need to regenerate response a few times, as sometimes it doesn't think it can be a GM... but of course, it should be more confident than that! Night and day.
It just works! But if you have it act for both the GM and the player(s), then you might miss on the information taking ancient artifacts from ruins is morally wrong