The problem with my experience is in how it scans back through the context to find the relevant information.
Not fast enough shouldn't be an issue. Hallucinations are a problem, always! There are some methods to limit that, but they tended to be complex and compute intensive. As relative compute goes down (faster hardware on less heavy LLMs), the people making LLM systems should be able to tackle that.
One of AI's biggest limitations I've noticed is that's attempt to summarize frequently inverts the meaning.
Are you using the right LLM for the job?
And as usual, we're still probably "25 years" away from functional AI.
What kind of AI are you talking about? That robot from the Jetsons? Or just another program/tool/service that does what it does reasonably well? That is already happening, as long as you keep your expectations realistic and don't take your experiences with a few LLMs and project that on all LLM tools/services. 'Perfect' AI, that's probably not happening in 25 years either. And what's good enough for you is somewhere in de middle and that also depends on what is good enough for you.
AI DMs may replace people or human DMs in the future to a limited degree, but I think you'll always have some pushback against AI being the DM by some people and some groups.
That kind of depends on the expectations of the group. Certain people playing pnp RPGs back in the day look at cRPGs in the same way, never going to happen, never going to replace the <insert xyz>. But we've been playing cRPGs for a long time! Even played D&D (Champions of Krynn) 35 years ago on my Amiga 500 and even earlier on my C64 (Pool of Radiance)... Later certain people of a newer generation thought the same about the success of MMORPGs...
For boardgames, the old Descent 1e+2e had one of the players be the 'DM', something not everyone wanted to be. If we wanted to RPG, we would play D&D (or Vampire or Shadowrun, etc.). Having our entire group be players against something else was great! And it might be a mobile app, it doesn't have to be, Gloomhaven works without an app. Depends on the game, depends on the players, depends on the mood, if we would want to play a game with an app. For Gloomhaven (Lion something-something) we used the sound app, so one of us didn't have to read a bunch of text aloud. Was very cool, very atmospheric! When the text reading was over, the phone went away. I also hate people messing on their phone or with anything else when we're playing a game, any game.
I personally use AI/LLM in prep. From making an interesting description of a room from some basic input, to converting it from text to voice, to generating images. That leaves me to do more interesting things and just upping the experience for everyone.