Under what circumstances would Server UFunction doesn't work?

Oh wait, just saw you have the AI controller on the Character is it ? The moment you set the AI Controller for the Character, Character’s Owner will be Sever again, there is no way Client can own a Pawn with AI Controller, even AI Behavior will run on server only. So basically, you are controlling an AI character through a Server, so my suggest it try to keep all Client-Server RPC on your proxy, and your main Character just gonna be replicated through server, if your Character want to change something just need to ask Proxy to do that for him.