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Even if it is only temporarily stored to RAM for processing, I struggle to see how that doesn’t still count as “recording”.
It probably wouldn’t meet the strict legal definition, as no copy (physical or digital) is left behind for any period of time - as RAM is volatile and its contents disappear on power cycle.
Or it probably would, they just have no plan to stop it unless they get sued and a judge forces them
The Hey Siri does the same thing it’s just all on-device.