The use of models is fantastic even if only to provide easier ways of handling pre-written text; like taking player input and categorizing it according to sentiment or estimated topic. I'm playing with it in Evennia and dialogue and interactions with the game are somewhat night and day. Just not having to guess for keywords is a wild improvement. However, it's also very slow unless you want to throw money away; running on a cheap droplet using Meta's zero-shot-classification for relatively brief queries... each takes a few seconds.

Text generation is where most people's minds go but as far as players are concerned UX is more important than a million different room descriptions; you can always write rooms yourself.