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This used to be my opinion, then I started using local models to help me write code. It's very useful for that, to automate rote work like writing header files, function descriptions etc. or even to spit out algorithms so that I don't have to look them up.
However there are indeed many applications that AI is completely useless for, or is simply the wrong tool.
While a diagnostic AI onboard in my car would be "useful", what is more useful is a well-documented industry standard protocol like OBD-II, and even better would be displaying the fault right on the dashboard instead of requiring a scan tool.
Conveniently none of these require a GPU in the car.