Enable tablet features on desktop app when using a writing tablet

Interestingly, on one of the demo videos, it shows that there is capability for the application to change handwriting (from a stylus) to text, but I’m unable to figure out how to do this.  It does a great job with smart shapes...now just need smart writing too!

I have also watched that video several times but can not get that feature to work, when I scribble over text like video it just scribbles or does nothing.