Impressive implemetation!
Before trying to answer to your question, you first need to understand how BL is populating the in-game scenes.
When you enter a scene, the game is creating "agents" (the bots) to interact with.
There are basically 2 types of agents.
- Those who are created based on "permanent" characters (unique ID): the main character, notables, Ladies and Lords, companions etc.
- Those randomly created to make the scene more alive: villagers, traders, townfolks, thugs, chickens, sheeps...
So to reply to your question:
The game may remember about those random NPC's only if they have an unique ID (not the case for villagers).
Which means that every time you speak to a villager (like in this showcase) and that ChatGPT starts to generate some "unique" background, the game will have to create a new "permanent" character with an unique ID. In addition to the appearance, culture etc... the generated background (only keywords maybe) will then be recorded and linked with that new "permanent" character ID.
Looks good so far but if there is no limit set and you start to speak with every single random villagers and townfolks in every villages and towns, you will end up with an impressive save bloat and really long loading time when entering towns/villagers.
But yeah, this showcase shows us probably the next gen of sandbox games.