Android has offered speech-to-text or voice recognition for quite the while, but until Android 4.1 it required online access to help with the translation, with the donkey work of recognition being offloaded to the Google computer in the sky.
The good news is that this can now be turned off, so recognition can be done wherever and whenever offline or online. To get this working Select Settings > Language & input > Google voice typing and tap the Settings button on the right. Choose Download offline speech recognition and by default English (US) is installed. To add your own language or type of English such as UK or Australian tap the All tab and select your language. From now on you can chat away to your Android device like you’re a crazy person who thinks a small person is living in there.