Yes, this feature can be enabled and disabled from the Advanced Features menu in Settings. It is on by default and currently only works for English.
Pulse will suggest relevant Smart Replies, within any conversation. If it has suggestions, they will appear directly above the area that you type your messages. Not all conversations will display Smart Replies. They change with each conversation and take the conversation context, into account.
You can also set up Smart Replies to be shown in your notifications. To have the notifications suggest Smart Replies, head to the Settings > Notification Actions to turn some of your action buttons into Smart Replies.
Smart Replies are generated directly on the device and are not computed on any remote server. They never leave your device and are not used outside of that local device, in any way.
