Let me just comment on
We end up with better titles...
and not on the layout of the proposed feature. I wonder how you have defined "better" in the training of the AI tool? Hopefully better doesn't only translate to a higher likelihood of visits (click bait optimization) but to something like appropriateness of the content and usefulness in searches.
In my mind, the ideal title would strike a balance of summarizing the content as specifically as possible and length on the other hand. Hopefully, this definition overlaps with whatever you mean by "better titles". Additionally, I worry that if the content of the question is insufficient, it's in general impossible to generate even a good title. The title can only be generated from the content, there might be problems even earlier in the asking work-flow.
Finally, have you thought about using that for automatic duplicate detection? A title is a summary of the content. If distinct questions would have a very similar or equal generated titletitles, they might likely be duplicates.
In any case, you need to decide what happens if the generated titles already exist on the site.