Many here have commented on the lamentable weaknesses of this development in terms of size constraints and so forth, and on possible medical applications, which could indeed be fascinating and useful for saving lives, but what about the much darker potential of technology like this developing heavily: Basically, if we're worried about modern mass surveillance, try to imagine a situation in which nano-scale surveillan…
I'm reminded of the novel The Golden Globe, by john varley. In that novel very powerful AI handle most day to day operations of society, and it is mentioned by one of them that - technologically speaking - they could create the single most despotic and privacy-eliminating regime in human history. A place where even an individual's thoughts and emotions are no longer secret, let alone snooping on every word they ever speak. The AI then says it could do this, but it will not, and has intentionally blinded itself to all such data streams. The central intelligence refuses to examine the incoming data as it believes doing so would violate its subjects human rights. In-novel this is why the AI doesn't just tell our protagonist where the big bad is, but I've found it an interesting possible trajectory for the future. Where every word we say is monitored, but it is strictly illegal to view said monitoring.
I wonder if that is the most realistic version of a future were we still have private lives.