The vast majority of companies are still putting most things in the cloud and will continue to do so and this far outnumbers the must-be-on-premise companies.
Sure there will be self-hosters but hosting AI models will always be more of a challenge than running scalable database on your own hardware and specialized hyperscalers will be here.
Would that require a watershed event to clearly establish the importance/risk of privacy though? For example, right now it seems like most big software companies w/ strong security process are comfortable uploading entire codebases to Israeli cybersecurity firms for vulnerability scanning compliance purposes