I haven't read through all of this, but "AI" has lost all meaning in my opinion. AI has been hyped up as some type of super intelligence thingie that can replace a human mind.
AI has been starting to get implemented in Apple's products for the last few years. AI will be things like "automatically translate a picture from English to Spanish" and "highlight the text in a picture" and "automatically name people in pictures". It's not going to be ChatGPT level type of conversations or MidJourny type of automatic picture generation.
For photos, Apple might use on device AI for things like automatically removing people in the background, or automatically adjusting color. For text, it might be text sentence prediction. For scheduling/ calendar, it might be automatic booking of reoccurring appointments.
People are going to be extremely disappointed if they are expecting ChatGPT level of AI.