Is chapter 1 of a novel really enough context to generate a chapter 2 of sufficient quality to match up to an author who spent a good amount of time planning out an entire story and whose manuscript probably went through a lot of revisions?
I don't necessarily just feed it chapter 1. (And chapter length varies between novels).
And no I don't think asking the A.I. to write the next 2000 words would require it to have the entire novel planned out. Not all writers even outline in advance.