The Story Engine that the studio is teasing us with is smart enough to act as your human DM. It would track the repercussions of your actions across the open-world game, it would have NPCs react and respond to your character in an evolving way.
Here is what they said in the video about it:
"Julian and I have worked in multiple situations where we had to design story telling apps that would build a story around your actions. Nobody in the RPG industry as far as I know have spent the time that we have spent inside the educational industry trying to do this and we have spent a lot of time modifying prototyping and building a story engine that we think will change how an RPG is done. We want to do what it felt like when a DM would sit across from you and react to what you did.
It started in infancy at Arena and was very primitive, Daggerfall was more involved and then every once in a while, years after, it was obvious that a story engine would be needed, and it would get more advanced every time I was on educational products. At this point i've been tinkering with it on and off for a few decades. It's gotten pretty good at this point. We hope it will be able to drive stories that would simulate a real person, Dungeon Master specifically, and continually keep the player with some decent stories but also make sure that there is continuation to these stories that would affect the world in a meaningfull way and in a persistant way so there is meaning in the short term to the quests and meaning after the quest is completed. That's the idea and it looks like after all that time, the technology will be able to do something like that."