All of this data is used to help the dictation feature understand you better and recognize what you say. When you use the keyboard dictation feature on your computer, the things you dictate will be recorded and sent to Apple to convert what you say into text and your computer will also send Apple other information, such as your name and nickname and the names, nicknames, and relationship with you (for example, "my dad") of your address book contacts (collectively, your "User Data"). It collected a bunch of other information about you and your contacts, and hung onto this data and your recorded utterances for an unknown amount of time: In fact, Cupertino didn’t just processs your data off-site. Speech-to-text was done in the cloud, so Apple got to listen to what you were saying. Not everyone was happy about Apple’s terms and conditions when it introduced dictation to OS X 10.8 (Mountain Lion).
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