I think people overestimate AI way too much and what they want is simply their imagination picturing something else entirely. The amount of power, resources and money thrown into making it work right now is pretty absurd so having a game with an open and dynamic world that can remain consistent with itself would require a level of processing power we simply can't attain and even we could, running it on a local system is impossible so we'd just turn into the final form of Games as a Service model. AKA we would quite literally not own our video games anymore because they'd have to ran off some city-sized server farm.