[freedomben]

I don't think you'd need a first party server. If it were me architecting this, I'd use a service or microservice for this (for example, possibly hitting GPT-4 API directly from the client with the info you need in the prompt), with non-AI emedded in the game for when that fails, such as in offline use or a service outage or something.

You don't need to be able to run the LLM locally yet in order to benefit from this, nor do you need to have your own robust game server.

It definitely needs to be done thoughtfully to avoid creating plot holes or messing up character personalities, but especially games like Stardew Valley I think you could get some super interesting storylines going. Embed the important characteristics and personality into the prompts, to keep the AI in line, but let it do it's thing.