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In a very short timespan it’s going to be expected that your phone can answer questions about what you did or talked about recently, what restaurants you went to. More capability is going to drive more data access, and people will grant it.

I absolutely do believe that (at least initially), vendors will try to do this privately. The models will live on your device or, like Apple Intelligence, they’ll use some kind of secure outsourcing. It’ll be required for adoption.