More work needs to be done on training models with less data, differential privacy, and unsupervised learning, but so long as supervised learning continues to be the main path forward for the current set of "AI" centralizing the data into ginormous data sets will continue to be the norm.

I don't see how unsupervised learning makes this any better? That data you're training on in an unsupervised manner is still collected somewhere, and could contain as much private information as a labeled dataset.

Yep, whether it's supervised or not has no bearing on privacy. What counts is where the data is processed and who has it.

Labels for supervised training tend to come from humans in the loop. I think many would consider another human looking at their photos, searches, etc. To be a loss of privacy albeit with a small surface area.

I think so- they acquired a company a few years back, percept.io, that did on device learning. I wouldn't be surprised if they were starting to put it in production.

what is ANI?

Artificial Narrow Intelligence or "weak" AI. Like Siri.