Will Paradox's "Life by You" do to EA's "The Sims" what Paradox's "Cities Skylines" did to EA's "SimCity?"

With a big dose of help from EA, Cities Skylines sort of trounced SimCity into oblivion. Now Paradox is coming out in September with a life sim that could do the same for abused fans (see DLCs) of The Sims. So far as I can tell, this will be the first mainstream game to use AI to create "real" conversations and reactions from NPCs. Pardon my enthusiasm, but this will make large swaths of the world's games seem like they are from an older, possibly even outdated, generation.

PC Gamer has a couple of articles up about the new game, though they don't mention the AI; one, two
There is a possibility that I've misunderstood the AI part. I'm trying to confirm, but there is not much information out there. They make a big deal about having "real" conversations with NPCs (they added some more info that seemed like AI to me), and given the prevalence now of modders using AI to create conversations, I just assumed that's what they meant.

HOWEVER, I just played The Sims 4 for the first time a few minutes ago, and I didn't realize that in The Sims everyone speaks gibberish. Therefore, anything not gibberish could theoretically be called a "real" conversation. I'm going to be really disappointed if that's all that they mean.