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See pic in attachment and see https://www.apple.com/newsroom/2023/05/apple-previews-live-speech-personal-voice-and-more-new-accessibility-features/ .

Shortly speaking: It’s not about Apple Watch but about iPhones and feature called “Personal Voice” which is described by Apple so: “those at risk of losing their ability to speak can use Personal Voice to create a synthesized voice that sounds like them for connecting with family and friends”.

Bottom line is that latest iPhones and Apple Watches have fat AI chips that can do AI stuff offline.

https://cdn.masto.host/podcastindexsocial/media_attachments/files/111/059/163/180/853/591/original/f0adcfb3e78500c0.jpeg