Like most of Microsoft's more odious features, this one can be turned off through GPO/Intune policy across an organization. As such, the liability will mostly fall on the organization to make sure it's off. The privacy and security impacts will be felt by individuals and small businesses.
They claim that the data is only stored locally, so far. We'll see, I guess.
Unlike Canada, where the consensus seems to be that the country is ruined now. Not damaged, or heading in the wrong direction or anything, but actually ruined. The only things that can save us now is banning all gender bathrooms and adopting bitcoin.