For example, a popular Youtube video has a battle between Link and Kirby in it: "He finally releases the Hylian Shield and lets Link be engulfed in a massive fireball. When Link is reduced to a pile of ashes, Kirby is victorious. Kirby wins the fight to the death. Link stands there, dazed by the attack."
Most of that actually sounds pretty darn good and even sounds written by a human. It's to the point where there is a sensible structure to the story because the AI is getting the relationships between words. Massive fireball -> pile of ashes -> victory -> wins the fight to the death. That all looks good. The problem is that "Link is reduced to a pile of ashes" should put Link into a "dead" state, and when in the "dead" state Link can't stand and be dazed.
The problem of course is that the computer can't understand all of this. It can understand that there is a probabilistic link between "pile of ashes" and "fight to the death" so after writing the first it is much more likely to write the second. But it still doesn't understand what "death" actually means. I've thought for a while that neural nets alone aren't going to solve machine generated speech and that the real solution will be some sort of hybrid between a neural net and some sort of finite state automata. The finite state automata could then put a character into a "dead" state and know that when in a "dead" state they can't "stand" or "be dazed."
Source: (Video by DougDoug where he manually sets up battles between characters with a few paragraphs and then lets the AI generate the text of the battle. Sometimes it makes sense and other times someone's face will turn into a button or their eyes will shoot lasers) https://www.youtube.com/watch?v=PwY-jVSM-f0&t=2835s