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I'm thinking of adding an element using ChatGPT - this wouldn't be used to replace writing but only very minimally to allow players to choose what they say to characters. Would this be allowed in the rules? It isn't using generative AI to replace handwritten dialogue, but just using it to allow an experience that wouldn't be otherwise possible.

Put another way - 99% of the game is handwritten, and the only 1% by AI is to enable greater player agency with their dialogue responses.

ChatGPT or any of its ouput can't be used in-game. You can use it outside to generate ideas, but anything that winds up in the final game needs to be rewritten in its entirety by you or one of your team members.

what if the gameplay itself is only possible with an AI?

Ah, in that case it would be outside of the jam specs.

ok no worries