My company is doing something similar with AI (although not quite this this awful) and I can tell you from various meetings that I've been in that management really doesn't have a clue how AI works. I think it's just a magic box.

The current genius plan is to run all of this locally on a big server farm, I don't think they have yet realised how expensive it's going to be due to price spikes, ironically because of AI. I highly doubt that it will ever actually come to fruition, or will get some incredibly watered down thing that barely operates but management obsess over for 6 months, until they inevitably stop caring.

I would place good money on a bet that says that 2 years from now they will not be using this.