Hah.
(GPT and I have a long history of me pointing out that it can’t remember a darn thing, and it never remembering anything. https://news.ycombinator.com/item?id=23346972)
You can prompt it with context, but that’s still only a few pages, not chapters. It’ll be hard to turn in game actions into a coherent prompt, then parse the output to take in-game actions. Both directions are difficult, but I suspect it’ll be much harder to get it to do things in the game in a unique way — i.e. you’ll run into the classic problem of all NPC’s feeling “kinda same-y” without being able to put your finger on why they don’t feel like unique human characters.
On the other hand, it does seem like I’ll be proven wrong within a decade, and I really look forward to it. :)
To the human brain, they will be real, as will the suffering from losing them, or the passion of falling in love with them.
Thankfully, resurrections will be an option for a fee, and virtual marriages will be sought but I think the mental health and legal issues will put the brakes on some of that.
Sex workers with VR headsets will allow for hook-ups with your AI lover.