I like the analogy of streaming services vs local media streaming, although I don't think it holds up when looking at history.

Streaming Services are getting worse and more expensive. I don't see a single report suggesting piracy is decreasing, it seemingly is only increasing now.

When costs increase, quality decreases people look for alternatives. The advent of faster broadband enabled Napster and MP3 sharing. I think this could have a resurgence if the peices align correctly (a new bitorrent client, a new torrent site, something to break the status quo).

How this related to AI, I don't know, although I wouldn't be set on the idea that we will never have local AI as the norm. There is a lot more movement in this space then there is for local streaming imo.