That is (as far as I know) only voice-matching. It matches the name you said to whatever pre-recorded read in name you have assigned to a contact.
So it's not like it actually understands what you say, more that this input "pretty much" matches this pre-recorded file.
There's a long way to from there to full, usable voice-recognition.
Also, some phones already have voice recognition, if minimal, right? You can say a name and the appropriate person is called.