Wired
Apple Doesn’t Want You to Worry About the New Apple Watch's Listening Features

Apple’s new Watch Series 12 and Ultra 4 add four opt-in “audio intelligence” tools—sound and music recognition, a conversation recap, and Live Rewind that transcribes the last 15 seconds—while processing all audio locally on the S11 chip’s Secure Exclave. Raw recordings never leave the device; only encrypted signatures or distilled transcripts are sent via Apple’s Private Cloud Compute, and they are deleted immediately after use.