I believe it does on newer macs (m4 has neural engine). It's not perfect, but I'm using it without issue. I suspect it'll get better each generation as Apple leans more into their AI offering.
There are also third parties like Wispr that I haven't tried, but might do a better job? No idea.
The mac one is pretty limited. I paid for a similar tool as above and the LLM backing makes the output so much better. All my industry specific jargon gets captured perfectly whereas the Apple dictation just made up nonsense.
There are also third parties like Wispr that I haven't tried, but might do a better job? No idea.