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With ever-growing context windows, I have a feeling that it will only be a matter of time before it forces us to adapt. ChatGPT-4o is somewhat intimidating already, though I haven't used it as extensively as you have.
But at the same time, I really would prefer to be wrong about that.
I've used it a fair bit. The extra context helps with things like getting facts straight, but it doesn't help with coming back to themes or the things that really make a story hit, you know? Even with the extra context, I still find the stories get worse and worse as they get longer.
I do think that a skilled author (better than me - I'm not awful but I'm no professional) could get a better output, but that doesn't cut the author out of the loop there.
That sort of thing can be handled by the framework outside of the AI's literal context window. I did some tinkering with some automated story-writing stuff a while back, just to get some experience with LLM APIs, and even working with an AI that had only a few thousand tokens' context I was able to get some pretty decent large-scale story structure. The key is to have the AI work in the same way that some human authors do; have them first generate an outline for the story, write up some character biographies, do revisions of those things, and only once a bunch of that stuff is done should it start writing actual prose.
I'm familiar with that. Not in quite that way because our app is for roleplaying where there isn't a prewritten story but we use a database to pull relevant info into context. You can definitely help it, but you need author chops to do it well.
Which means maybe this is a tool that could help good writers write faster, but it won't make a poor writer into a good one. If for no reason other than you need to know how to steer and correct the output.