As far as I know the air tags create a sort of mesh network using iPhones.
Everyones iPhone is on by default so if a handbag (with an air tag inside) had been left in a restaurant and you passed by with an iPhone in your pocket, then it would use your iPhone to send the air tags location.
Apple says:
Quote:
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Your location data and history are never stored on the AirTag itself. Devices that relay the location of your AirTag also stay anonymous, and that location data is encrypted every step of the way. So not even Apple knows the location of your AirTag or the identity of the device that helps find it.
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I believe there is a way to disable the service that does this if you are not happy with your iPhone being used for this.
As for concerns about stalking, it is something that people have talked about before.
Apple implemented a sollution so that if the Air Tag is with someone else and seperated from it's owner, then it will beep and alert people that there is an air tag near them.