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The Twelfth Annual Game Design Think Tank
Project Horseshoe 2017
horseshoe Group Report:
Better Than Dialogue Trees
Participants: A.K.A. "Almost Human"
Ian Schreiber, Rochester Institute of Technology Wendy Despain, SMU Guildhall
Trey Alsup, Wishcraft Simulations Jonathan Hamel, Ready at Dawn
Ethan Ham, Bradley University Jason VandenBerghe, ArenaNet
Yuri Bialoskursky, Electronic Arts Jerry Belich, Miami University
Facilitator: Jeff Pobst, Hidden Path Entertainment  
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[Note: This report was captured from a slideshow document, which can be downloaded here:
Project Horseshoe 2017 - Better Than Dialogue Trees.pptx]

Additional links you may find helpful:

More ideas for experimental dialogue systems:

Example of a player choosing the point of view of the story rather than modifying the story itself:

Forum thread on making dialogue in games inherently fun:

A concept for linking narrative and dialogue systems together:

A psychological theory about how people interact in social situations, in ways that could form the basis for a conversation system: