The privacy concern I find to be particularly overstated. This is an identical concern to ones that have existed before AI ever entered the fray. Anytime you send data to a system that someone else controls you run those exact same risks. I also think there’s an overstated fear that an app focused on private data (something similar to Signal) would just add some kind of AI functionality one day out of the blue and suddenly ship your data off to a hive mind.
Any app that is willing to cross that line already has done so (e.g., Facebook).
It also seems to be technologically simple to perform a lot of AI tasks without compromising privacy. E.g., chips with local-first AI computational ability are reaching consumer level devices. Even the much-maligned Windows Recall feature specifically emphasizes how it never sends information to Microsoft servers nor processes data in the cloud.