Critically, “Meta, Amazon, and Microsoft told 404 Media they have no involvement with CMG’s Voice Data tool.”
But more importantly, they can’t listen on your microphone unless you give them permission. It’s not a thing that is technically possible. And like the article says, these days phones even show an indicator to alert you when the microphone is on.
Search patterns yes, but also location data, and it’s aggregated over all your friends. So if you go to a restaurant together with a friend who recently searched for some clothes brand, the algorithm will know that and show you ads for that brand. Chances are you talked about his interests when you met, so you incorrectly infer that it was listening to the conversation.