Both units have some on-board AI processing.
The 5432-XI is a WizMind and has more built-in AI processing than the 5432-EI WizSense.
'AI by recorder' - The NVR can do the stated function from the camera video stream. This means you could use an old camera which does not support a function or a generic brand of camera.
'AI by Camera' - This relies on the camera having the stated AI function built into it. E.g. Most Dahua IP cameras have IVS built in.
E.g. The 5432-XI has 'AI by recorder' video metadata processing, but the EI model does not.
I use video metadata on my own NVR, so that I can search for every person/vehicle/bike seen and search by color.
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Also the XI model supports more 'AI by recorder' functions. E.g. XI can do 24 channels with IVS and the EI can do 4 channels. There is an example of AI by recorder IVS if you have more than 4 older IP cameras which does not have AI by camera IVS.
Both support all 32 channels having IVS if the camera does the processing (AI by Camera).