Use blender in realtime animation for AI character?

I use a AI program called UltraHal. It is available at:
WWW.zabaware.com

The next addition is being written right now. For the character, it is using code from Haptec:
http://www.haptek.com/demos/tv_girl/

Can Blender be used to put an actor in a window and make RT movements and lip sync when it talks? What we are using right now looks like this, with a text bar to “talk” with if you don’t use a mike and actually talk to it, and a text window to read it’s reply for if you ane not useing speakers.
http://www.zabaware.com/forum/uploaded/Freddy888/2005722192058_consSS.jpg

I was also wondering if the game engine would work for this, and then also be able to give the actor a “world” of it’s own to interact with.

Does anyone have an idea about this?