How far are we to fully custom generated ai NSFW ren'py VN where the player customizes the caracters and the story and the ai generates the story, choices and renders?

As of my last update in October 2023, the development of fully custom AI-generated content in visual novel engines like Ren'Py, especially for NSFW (not safe for work) content, is a complex challenge that involves several stages of technology integration:

**AI Character Generation**: Achieving personalized character designs and traits based on user inputs can be approached using existing AI models for art generation, such as GANs (Generative Adversarial Networks). Tools like DALL-E, Midjourney, or Stable Diffusion are already capable of generating unique character images, but tailoring them specifically for interactive narratives remains an area of growth.

**Dynamic Story Generation**: Natural language processing (NLP) models, like GPT-3 and its successors, can create narratives based on prompts. While these models can handle story generation and offer branching dialogue, they may struggle with maintaining coherence over longer interactions, complex narratives, or deeply personalized story arcs.

**Player Choices Integration**: Integrating player choices into an AI-generated narrative introduces challenges in creating consistent outcomes, character reactions, and logical plot progression. Building a system that can adaptively weave player choices into a story while keeping track of character development and story arcs is technically complicated.

**Rendering and Animation**: While 2D character assets can be generated by AI, rendering fully animated scenes dynamically requires a significant leap in technology. Current AI tools can assist in animation, but a fully automated pipeline that includes real-time rendering based on player choices and narrative developments is still under research and development.

**Ethical and Legal Considerations**: Developing NSFW content raises various ethical and legal questions, which can pose additional hurdles during both technological development and distribution. Different jurisdictions have specific laws regarding adult content, and ensuring compliance is crucial.

Overall, while progress is being made across all these facets, a fully integrated system that seamlessly generates customizable AI-driven characters, stories, and visuals in a user-friendly manner is likely still a few years away. Current tools may offer elements of this experience, but achieving a polished, coherent interactive experience that meets users' expectations will take time and ongoing innovation in AI and VN development.