"We've found GPT-4 class models particularly effective in creating role-play scenarios" (76 page PDF), write the authors. In this article they describe some of their techniques: crafting prompts to the AI knows its role, creating a variety of scenario options, and having it provide a positinve and supportive experience for students (you don't want it to turn toward the dark side). There's a really nice 'negotiation role-play prompt' provided as an example. What I like about this is that it plays to the strength of the AI, where it doesn't matter if it hallucinates (that actually makes the scenario better) and where it doesn't depend on factual knowledge.
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