It’s not sending every word to the cloud. I think you must invoke the AI features. Am I wrong?
We are yet to see if that means only the data you’ve invoked ai features for, or totality of your emails, notes, messages, transcripts of your audio, etc.
So (as I understand it) something like "What time does my Mom's flight arrive?" could read your email and contacts to find the flight on-device, but necessarily has to send the flight information and only the flight information to answer the arrival time.