On a MAC MINI with Apple silicon Apple M2 Pro chip, after installing Sequoia the same problem happened.
All AI functionality was disabled, that didn't help until I noticed that some analysis functions were consuming CPU time in the Activity Monitor.
Anyway initially my idea was that it must have been AI, searching and indexing related so Apple Intelligence, Siri, Spotify and maybe other functions Media- and Photo Analysis should be disabled.
Disabling Media- and Photo analysis functions indeed did the Job!
Do this in a terminal screen (skip mymac> ):
mymac> sudo launchctl disable gui/$(id -u)/com.apple.photoanalysisd
mymac> sudo launchctl disable gui/$(id -u)/com.apple.mediaanalysisd
mymac> sudo launchctl disable gui/$(id -u)/com.apple.photolibraryd
Restart the machine, and then check in terminal screen if those processes really don't start anymore:
mymac> ps aux | grep -E 'photoanalysisd|mediaanalysisd|photolibraryd'
It is up to Apple to get this annoyance right, until then I will take it for granted that some, maybe useful media/photo functionality won't work.
AI implementations still seem to be in the Quick-and-Dirty baby stage ;)