Both do local processing for the keywords until it hears one then sends the following data (and I believe a few seconds prior) to the servers for processing.
My phone works the exact same way with the Google assistant. I don't know if other "assistants" (like Bixby) work the same way.
I enjoyed the conversation with Alex Stamos (former CSO at Yahoo/FB), where pointed out that had George Orwell been told that people would willingly pay for a tracking device and keep it on them at all times and powered on at all times, he would not have believed it.
I should add, any time I say anything even remotely negative about cell phones, I get beat up here at HN pretty good. This is a very good psychological indication that people have cognitive dissonance and denial around this topic.