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Why does this service 'require' google? I see no reason why this could not be implemented entirely on the device rather than in the cloud/on someone else's computer.

It doesn't require Google. It's a service offered by Google that requires the caller to identify themselves. It could be done by anyone, but probably easiest if you have a VoIP line handling the initial call and then redirecting the incoming call to your primary number if the caller is verified (like Google voice). I've only seen this on Google Voice, but I'm sure it's a common enough solution.

The Google version is implemented on the device.

From the link someone gave in a nearby comment: "Call Screen’s on-device speech recognition lets you see a real-time transcript of what the caller is asked and how they respond." (https://support.google.com/phoneapp/answer/9094888)

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