From that picture, it looks like you’re running out of RAM. Do you have other apps open? If not, that’s a lot of memory for one layer. You might want to bring the effect down or buy more RAM.
Yes, the project is rendered via the CPU, but for that to happen, the assets need to be put in memory. If it runs out of memory, it will put it in the hard drive or ssd, which is many times slower.
Generally speaking, it depends on the effect. Some are pretty CPU heavy while not using much memory. Others use a lot of memory, in which case your CPU usage goes down because it has to wait for the hard drive, ssd, etc.
As for GPUs, After Effects doesn’t use them very much. Some effects are better at it, and they’re slowly optimizing some of their effects. But they still have ways to go. For now is mostly CPU.