The important aspect for the NSA's interpretation is that algorithms can look at and process the data and create metadata or synopsis information from it.

Having an intelligence system ingest this metadata and synopsis is not considered "collection".

Essentially, if it can be automated, it isn't collection. If a human gets pulled into the loop to look at data, that's when it's collected. However, a human could be shown a synopsis or an inference about an American target and this could still not be collection, as the summary information being viewed isn't considered the person's private records.

Basically a loophole in a loophole. I'll be happy to keep databases of, and run software over, our national security records. I won't collect any of it, though. I won't even look at it. I'll just get summaries of the information contained in it from my algorithms - and if I want to look at a specific document I'll punch a rubber stamp on it first.