In the glasses is just a client to the ai. Like there is no ai in your phone when you talk to chatgpt, you are querying it and it will not keep talking to you if you cut off the wifi
The prerecorded responses I speculated about would have been things like "i'm having some connectivity problems, I'm unable to chat at this time, I'll let you know when I'm back." - the same kind of prerecorded things your earbuds tell you when they're low on power.