Sounds more like the doll is akin to a Bluetooth headset. It's got a mic, a speaker, and a BT transmitter which provides i/o to a mobile application running on

Sounds more like the doll is akin to a Bluetooth headset. It's got a mic, a speaker, and a BT transmitter which provides i/o to a mobile application running on a smartphone or tablet (much the way a Bluetooth headset would operate with a phone). The mobile application does any local processing and handles queries to remote servers and such.