IMHO, Apple's PCC is a step in the right direction in terms of general AI privacy nightmares where they are at today. It's not a perfect system, since it's not fully transparent and auditable, and I do not like their new opt-out photo scanning feature running on PCC, but there really is a lot to be inspired by it.
My startup is going down this path ourselves, building on top of AWS Nitro and Nvidia Confidential Compute to provide end to end encryption from the AI user to the model running on the enclave side of an H100. It's not very widely known that you can do this with H100s but I really want to see this more in the next few years.