Considering in the video they said that it needed cloud computing power with parallel PS systems I can't see how this can run on PS4 or PS5. I would have to imagine that the AI will learn the track, and once learned this will be burned into a patch (i.e. it won't continue learning on your own PS). What it will need to do on the fly though is react to other drivers.
As for people moaning about this ruining the campaign - I would say it's highly unlikely it'll be put in the campaign mode. That mode would have been tweaked for the current AI in GT7. And if it's the same old, chase the rabbit, style campaign then a super fast, human-like, AI is not going to be appropriate. I would imagine this would be saved for challenges/custom races where you want a good close race, and winning is not that important. Caveat is if they can tweak the speed of the AI, then they could potentially add it to the campaign without making it faster than the old AI - but instead just giving you a more enjoyable race because they react to your driving better.