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Social interactions in video games are split into 3 different groups: 1. Passing dialogue: When ever you walk by NPC (non playable character) Sometimes they spout out a line of dialogue. This can be prompted by a button press or simply by getting close to the characters. Examples of this are everywhere. From Pokemon to Skyrim. Use these types of dialogue to your game to add background noise and to save on time with world building. These can also be used for irony as some funny games have one stereotypical character say the same line over and over again like in the old games.
Pokemon
2. Interactive Dialogue: Sometimes interacting with characters can extend to choosing what you say. Or maybe your player has done some things in the past. Either way somehow you influence what someone says. Usually these interactions are limited and don't affect overall gameplay. Instead use them add some depth to your world and make it seem like the characters are alive. Examples of these are Bioshock Infinite, and Stardew Valley.
Bioshock Infinite
3. Influence Dialogue: Some times games have important moments where your actions effect something that happens later in the game or permanently changes your (and the rest of the worlds) dynamic with this character. Sometimes you can tell a character that they will never by your friend or that they should shoot for the stars and this can change their ambitions or what they think of you. These are mostly used in games where the system acts as a main part of the gameplay. This is because it takes so much time to put in this kind of a system (with voice acting, multipul story lines and new animations for every reaction. Examples include any of Telltales games or the Mass Effect series.
Telltales: Batman