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Pros ansible-remote:
Doesn't require ansible to be installed on the target i.e. the instance building the AMI. Simplify using complex setup of ansible playbooks (over multiple repository etc), and usage of ansible-vault.
Cons ansible-remote:
Requires ansible to be installed on the host i.e. you can't build from Windows.
Pros/cons ansible-local: basically the reverse of the above.
If you are heavy ansible users and don't run ansible-pull I would start by trying to use ansible-remote since that is similar to what you use now days.
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Thanks for the replies guys!