Apple introduces "cloudless dictation", no longer demands your contact list to understand you
Not everyone was happy about Apple’s terms and conditions when it introduced dictation to OS X: speech-to-text was done in the cloud, so Apple got to listen to what you were saying.
OS X Mavericks changes that – though apparently more for performance than privacy…
Story added 29. October 2013, content source with full text you can find at link above.