I really don’t see this working with current 5G technology. The latency is too high.
While 5G has some low-latency features they are not thought as general use ones - they are reserved for specific "critical" tasks. Moreover, unless Canon builds a lot of sites worldwide to put processing power closer to the user, there's still the whole internet latency to take into account, once the data leaves the 5G network. If there is one when on a safari or near the Poles, of course... and maybe combat drones will start to target specific 5G signals (using their AIs to spot them, of course).
But I agree with you that running using models doesn't require the processing power to create them - and there now are specific "AI processors" to run models on end-user devices. So probably subscriptions will download models (or activate them) locally - what they are used for is the real question.
I don't think generative AIs have much use in a camera used to create images form their lenses - unless someone wants to replace the Moon with a better looking one like Samsung already does, or their partner with a better looking one - but there are other kind of AIs that could be useful - for focusing, controlling DoF, stacking, HDR, IS, T/S etc. - for Canon the real question is what is in the default camera configuration and what should go into a subscription - and how willingly are users to pay for such features. It they get the wrong balance, it can seriously hamper sales.