Getting this stuff to work well is hard. The fact that the contexts should be limited by being in a game will help though.
Typically these sorts of processors are done as Markov chains. This is why they eventually start to repeat themselves. I remember hearing a conference presentation where a researcher was using genetic algorithms to produce dynamic transition matrices to get more natural responses from a bot. I can't recall the guy's name (it was 17 years ago) but he was relying on the idea that the human response should relate to what the bot said if what the bot said made sense. The correlation between responses adjusted the weights in the matrix.
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