The way I picture it is like an "endless dungeon crawl" mode similar to PF Kingmaker CRPG where you can go in to face infinite encounter waves generated by the machine. It is always "new" as in "look, the next wave of enemies is goblins just like wave number 21, but now they've got an elemental damage buff and an anti magic aura".
It will have it's appeal as a passtime, to test a build and honestly in this regard it could be pretty interesting. However from my perspective this exists in a context where DnD itself is transformed from a TTRPG into a video game experience entirely bound to digital content, their own VTT and that is precisely what allows for this "AI-DM" integration.