I don't think we're far from seeing this in movies and/or games. In particular for gaming there is some amazing things happening on Unreal Engine 5 atm with AI NPCs. Imagine something like GTA but you can talk to every NPC on the map and each one has a back story. Gaming is gonna 🚀  

 Imagine Assassin's Creed in a Rome like this 👀 

 It will come. Check this out. It's from the UE5 tech demo.
 https://www.youtube.com/watch?v=L3QoL98oMZI