Yeah, AI to knock out the egregious stuff (n-bombs etc) is prefectly reasonable. But there is still a lot of harassment that can happen the really needs a human to interpret. Its a balance.

The privacy i am thinking of is the legal side of things. Google/FB/Apple are huge companies with the resources to work through the different legal requirements for every state and country. Google/FB/Apple can afford to just settle if anything goes wrong. A game studio cannot always do the same. As soon as you store a recording of a users voice, even temporarily, it opens up a lot of legal risks. Developers/publishers should still do it imo, but i dont think its something that can just be turned on without careful consideration.