What is the moral difference between me hearing someone's PHI, and writing it down in a note, and my phone hearing it? Let's stipulate that all smartphones are always and everywhere listening to everything, and sending it to someone; it may as well be me.
> What is the moral difference between me hearing someone's PHI, and my phone hearing it?
In a court, hearsay is inadmissible; a recording (critically different than mere hearing) is far more likely to be admissible. That's for a good reason. (HIPAA compliance is also not a strictly moral question, but a legal one.)
> Let's stipulate that all smartphones are always and everywhere listening to everything, and sending it to someone...
Even if you're using something like "hey Siri" or "OK Google", that's not how they work.