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The dedicated TPM chip is already being used for side-channel attacks. A new processor running arbitrary code would be a black hat's wet dream.
It will be.
IoT devices are already getting owned at staggering rates. Adding a learning model that currently cannot be secured is absolutely going to happen, and going to cause a whole new large batch of breaches.
Who in the heck are the 16%
Maybe people doing AI development who want the option of running local models.
But baking AI into all consumer hardware is dumb. Very few want it. saas AI is a thing. To the degree saas AI doesn't offer the privacy of local AI, networked local AI on devices you don't fully control offers even less. So it makes no sense for people who value convenience. It offers no value for people who want privacy. It only offers value to people doing software development who need more playground options, and I can go buy a graphics card myself thank you very much.