This seems to yeild some of the "portrait mode" effects. Seen in smart phones.
So, no, this doesn't have anything to do with smart phones.
In ye' olde times, induced background blur would have been a gaussian blur in software. I'm not sure what special magic they do today. https://arxiv.org/abs/2006.05698 suggests things have moved on.
In any case, gaussian blur is definitely the wrong kernel to do it. There could be definite improvements before jumping to deep learning.