Well its like this CPU related stuff is stored in the RAM while the GPU related stuff is stored in the VRAM.
If there is not enough VRAM, then the GPU asks the CPU to use the regular RAM. But since the communication between the GPU and the regular RAM has to go though the motherboard, it takes longer then simply accessing the VRAM and thus causes the performance to tank.
So loading everything related to the open world in to RAM would mean that you are totally ignoring you even have VRAM and thats horrible optimization. Especialy since everything you can see is handled by the GPU and not the CPU. The CPU handles the synchronization, AI, BG calculations and so on. So requiring such an amount of RAM means that they are planing a whole shitload of BG calculations to be running, not related to graphics or maybe even the city itself.
As said im guessing they will be using it ti simulate the CTOS and how its integrated in to the society of the game. That could cause a big load on the RAM itself. But this is just a guess, and quite personally it would be a shitty idea from an optimization standpoint.