This seems somewhat specious - it's also quite possible that they just altered the wording to make it less verbose. Does anyone have access to the link "Learn more about on-device AI"?
If Chrome starts sending data from the browser back to Google, that's going to be a huge compliance issue. If you work for a company that processes customer data in the browser, you're going to need to ban Chrome.
Chrome has been doing that since the beginning.
Good idea.
Chrome has been recording metadata (URLs, timestamps, etc) about your activity since forever, and you can turn this off if you like, see https://myactivity.google.com/myactivity.
They don't record data (POSTs etc).