You think when you turn on your computer at 11 pm to play a game a live paid writer pops on to role play all 200 characters for you in real time? That’s not how it works. AI driven NPCs don’t take jobs from writers. They do something writers don’t do and can’t do.

Better interactions may be a nice thing and beneficial for some games or experiences, don't get me wrong. But I still prefer handcrafted dialogue trees over machine learning for multiple reasons.

Writers will be hired to fill and train AI models but once they are trained and deemed well enough, these models will just be reused ad nauseum. It's already happening. Writers may not be able to recognize their own work anymore, when it's synthesized like that on the fly.