In what way does this violate the privacy of anyone around them? It doesn't even store audio recordings, which is something every smartphone has been able to do for 20 years.
It’s also much less effective at recording people speaking for long durations than the audio recording feature that every smartphone for the last 20 years has supported.
"Siri Recap" records throughout the day without the user needing to constantly enable it. It provides AI summaries of the recorded conversations including direct quotes.
"Live Rewind" shows an exact transcript of conversation but only of the 15 seconds immediately before the user activated it.