Back in the day when everything had to be processed server-side sure.

Now we have purpose-built hardware helping work this shit out. The devices are basically capable of handling native language resolution locally. They're no longer need to farm the data out. I still don't think they're doing this we would see it in the open source operating systems, but if they wanted to any late model cell phone would be absolutely fine parsing out your interests from your conversations. Hell, I'm sure the contents of this dictation I'm making now are being reduced and added to my social graph at Google.