I think it is the difference between offering the service of scanning and rebinding and offering the service of selling a scanning and rebinding machine. If I buy the machine, then I'm free to use it to make my own copies.

I mentioned in another post, my understanding is the AI is running on the users machine (given neural networks are cheap to run and expensive to train, it seems plausible the phone is capable of running it). If I'm wrong then my comments don't apply and the issue is more convoluted (I would almost agree it isn't legal in such a case, but I would first have to see about some case law to what I think of as equivalent services, such as online backups/storage/vcr to dvd services).