With the rapid adoption of AI in creative and design fields, how can we ensure that innovation does not come at the expense of cultural character and local privacy? Are there any successful models currently?"
I don't think there is a model involving such aspects. Concerning cultural aspects, it should be included in prompt designing to get adequate materials and so, AI would reinforce cultural awareness. When dealing with local privacy, the importance is capital, but unfortunately such aspect would not be considered when using free versions.