No, Jibo is not always listening-- he's only listening for his wake-up phrase, "Hey Jibo." Anything that isn't "Hey Jibo" is automatically and instantly discarded. It never makes its way to the cloud or to our servers-- it's only ever processed on Jibo himself and then discarded.
When Jibo hears his wake-up phrase, his eye and light ring will turn blue so that you know he's listening. Anything you say while his light ring is blue is sent to the cloud for processing. Jibo's light ring will go off when he's detected that you've finished speaking, if he's picking up too much background noise, or if he's heard too many words to process them.
If Jibo searches the internet for an answer to your request (i.e. "Who is Bill Murray?" or "Where is the closest Starbucks?"), the search history is recorded in your app in accordance with COPPA Compliance.
Jibo is also not always watching-- While he can "see" you or detect your face (he might say hi to you when you walk in the room or turn his head when he detects movement), this information is never saved or recorded. Visual information is only saved if you ask Jibo take a photo.
What about when Jibo is paired with the Commander App? When Jibo is paired with Commander, you, the Jibo owner, are in control. He doesn’t do anything unless you request him to, and only you can see what he sees. See What is the Jibo Commander App? to learn more.
See also: Turn around Jibo