Dubbed NEO NPCs, Ubisoft's efforts involves combining AI responses with narrative back stories and prompts designed to avoid making the NPCs appear 'soulless'.
The project is an R&D initiative led by Ubisoft’s Paris alongside its Production Technology department. There were three experiments in total, and all of them using voice commands.
https://www.gamesindustry.biz/ubisoft-debuts-neo-npc-ai-prototypes-at-gdc
==NEO NPCs from Ubisoft