Expanding lore for towns that might be thrown away I think is a good use.

Feed it a few notes you want to make sure get included, drop some hooks you like and let it weave it in.

Something I always struggle with is deciding which NPCs are “expendable” Bec once I write a story for them I don’t want them to die, because I know my players won’t remember them fondly but if it’s AI slop stories then it’s fine.

Edit: I’m building for DnD/TTRPGs if that’s not obvious

In one of my stories, there’s a misaligned AI that guards a city as a plot point, it was initially create to protect the city but judged its human inhabitants as a threat to the city so it expelled them where they died.