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There was a great Reply All episode about this just last week. It's about facebook, but a lot of the points would apply to google. https://gimletmedia.com/episode/109-facebook-spying/

Short answer, no, they probably aren't listening. But they know enough other information about you that they don't need to.

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I'm not sure what would disturb me more. Knowing they sometimes use the mic to listen to me talking (this I could prevent but not having my phone around) or that they already know so much about me that my conversations add little information to what they know about me.

Well, I can say that my experience and my g/f too, have been from conversations we've had at the house we live in and it's usually something random.

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