Are you sure? Just tested it and it works locally and offline
replyI believe you're correct as of the last few iPhone generations. iOS 27 (with newer models of device required) have even better transcription coming as well, all on device.
replyIt says right on it when you enable it:
reply> Dictation sends information like your voice input, contacts, and location to Apple when necessary for processing your requests.
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replyOh my, this is the first time I read about it ever. Thanks for sharing it! I'll stop using the built-in dictation now.
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