How not to render characters that are far away from the player?

Imagine you’re making a huge open world game with hundreds of characters walking around the landscape. Meshes and foliage can be optimized with Cull Distance Volume, but what about characters? From what I understand, Cull Distance Volume doesn’t handle movable objects. So what are my options for not rendering characters that are very far away from the player? Is it possible to maybe change these distant characters from Movable to Static and make them temporarily like statues/static objects? And if the player gets close to them, switch them back to Movable mode? How does AAA open world games from Bethesda deal with this issue?

data layer should do it if you are using world partition or else level streaming would do it if it is the old ways