Nano-Magic - Eric S Martell - Bog

Can humans find a place in a world filled with self-replicating, AI-controlled nanobots?
Sophie understood the problem better than any other cyber-sorcerer. She'd been there at the beginning. The benign AI, Hippocrates, has never spoken to any other humans besides her and Michael and is now missing. The other AI, Wiindigo, means nothing good for humans. The rogue intelligence intends to dominate the world and all that it contains, humans included.

In the world after AI, nanobot mediated spells can be performed by knowledgeable humans, leaving those who don’t have that ability as a permanent underclass. Spells can be used for DNA manipulation and, as a result, many species of were-creatures exist. Chimeras, animals with human DNA, have developed the ability to speak. Brownies exist, and Fairies fly over the meadows.
All is not well in the new order. Wiindigo's nanites have scattered over the countryside and blindly seek to regroup. Local concentrations of the rogue AI’s nanites form horrendous threats, taking the semblance of mythological monsters.
The “Good Powers,” Sophie and Michael, must contend with other sorcerers in their struggle to keep humans from becoming Wiindigo’s puppets. Wiindigo’s nanites are everywhere and pose a constant threat.

They will need all the assistance they can get, from every source-no matter how strange.