Extremely optimistic take IMHO that anyone will be allowed to own a powerful box of artificial intelligence
So it is less about whether people will be “allowed” to own AI, and more about whether there will be anything useful to own in the first place.
The incentive for local models is mostly to make them good orchestrators or user agents. They may give you some privacy and control, but they will still depend on much larger models running in datacenters for anything difficult.
I remember all the excitement around OpenMoko and other open-source “BlackBerry killer” projects. BlackBerry did get killed, but not by any of those individual-first projects.
For AI regulation, I think we should focus on normal commercial rules: consumer protection, privacy, antitrust, liability, and so on. In other words, focus on where money changes hands and where companies have power over users.
Military and offensive use is different. There, regulation is not much of a defense. The real defense is having enough capability and strength of your own.
Restricting AI because it can give dangerous knowledge to ordinary people is like restricting the printing press because it can be used to spread radical ideas.