Fail-safe transcription

I have a question about what would happen to the local transcription if I have enabled the Enhance transcription with AI, and the AI fails for whatever reason. Does the transcription survive and simply fallback to just transcription?

While it’s not happened yet, I have experienced some issues in another app which uses my Gemini API and it times-out or just fails. And Google have had some outages with their API, so that got me thinking what would happen.