Boy, was 1992 a different time for computer games. Epic MegaGames' Jill of the Jungle illustrates that as well as any other title from the era. Designed and programmed by Epic Games CEO Tim Sweeney, the game was meant to prove that console-style games of the original Nintendo era could work just as well on PCs. (Later, the onus of proof would often be in the reverse direction.)
AI characters giving you the possibility of infinite dialogue with a really simple setup for creators means small teams will be able to create games with immense amounts of characters and immense and interactive worlds.