@rom yes, Apple has been good at making sure user has knowledge and control over how these things work. I expect local processing, as smaller LLMs can run on newer phones, but Apple also recently announced "Private Cloud Compute" which is supposed to offload compute intensive tasks to cloud while preserving privacy. Not sure which one this is, but turning off all network connectivity and checking if the transcription quality changes should help.
@futurebird It seems Apple is not immune to pushing the LLM hype into their devices. They did delay rolling out "LLM Siri" and had papers about LLMs inability to do reasoning, so their devices may still be a better choice in that regard, especially considering how MS and Google are fully on board with this.