Awesome, will check out IDN and Elan Ruskin, thanks for the recommends! Did Ken Levine ever hint that he was going to experiment with this kind of subject? I only know him by name from his work on BioShock and while I loved BioShock: Infinite’s story (spoilters for that game inc) and Elizabeth’s gameplay AI, [SPOILER]the main plot was rather linear - kind of a letdown when I played it a second time[/SPOILER].
It was a bit of a blanket statement that the tech doesn’t exist.
When I was doing comp science at university we had to learn a language called Prolog, which I didn’t enjoy at the time until I realized its amazing potential years later. To those who don’t know it, it’s a flexible query solving language where you provide symbolic knowledge and symbolic rules and can then query what other knowledge can be derived from what is provided. But what is interesting about Prolog is that the query can have multiple free variables and Prolog can find and return combinations of values that fill the free variables so that the query is satisfied. And that feature set is something that social AI needs: the ability to solve broad queries (how am I feeling today?) and return detailed information from which dialogue can be generated (I’m feeling great because I came across a cat and I got to pet it <= this being an actual gameplay event).
I haven’t found something that approaches my ideal tech yet, that uses logical programming but also can be integrated in a UE4 game. Last year I started prototyping my own logical programming solver for the purpose of eventually experimenting with this idea in UE4. That part is done but unfortunately I lost my ambition when the main challenge became understanding UE4’s graph editor code. 
Would love to continue someday and add some contribution to this field in a UE4 ready way. I love game-ready social tech, like this plugin I made for Garry’s Mod a while back (not AI though): http://www.flexposer.com/