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My guess is when we no longer can produce enough energy or not enough water to cool down all the DC but energy is my bet.
Now that you can run it locally, never.
AI is going to stay with us forever. Its really matter of this how we are going to position itself in our day-day activities.

Right query would be "When will AI hype disappear?"

Its a battle between AI-tool VS AI-Boss

When money runs out.
That’s when you choose for AI to disappear… but most people are comfortable living in the matrix.
As quick as a snap of the fingers I can detail the Battle of Muye 1045 BC. AI is the best thing since ham and cheeze on sliced bread.
When Will AI Disappear?

When energy the power grid goes offline permanently. People that have really good solar/battery setups may be able to run it locally but their model will be less likely to get updated as the internet would be a thing of the past. At this point people will be more concerned with drinkable water, food, keeping invaders off their land, rare moments they can sleep, diseases, etc... There are many great filters ahead. At this point big-data+LLM "AI" hype would be no more.

During the Brexit voting period, a quote stuck to me: “whether yes or no wins, we are going to talk about Brexit for the next decade.”

The same applies to AI, and the timescale will be much longer than that.