Why would you expect that? State of the art LLMs need a GPU with hundreds of GB of RAM costing tens of thousands of dollars. Apple doesn't have magical supernatural powers. They are still bound by the laws of physics. Siri is still running on device (mostly) and is quite powerful with this new update.
in the past Apple has made the choice to gimp their functionality before sending data off-device - one of the reasons Siri has sucked so badly. This seems like a distinct change here, finally conceding that they just can't do it on device and be competitive. But I forsee they now have a much more challenging story to tell from a marketing point of view, now that they can no longer clearly and simply tell people information doesn't leave their device.
I've been using Siri more often recently and surprised at how capable it is for something that runs entirely on a phone. The speech recognition is perfect and it can do basic tasks quite well. Send messages, lookup word definitions, set timers and alarms, check the weather, adjust timers/alarms, control Spotify, call people, adjust the brightness and sound level, control lighting in the lounge, create and read notes or reminders, etc. It all works.