Conventional in vivo neural signal processing involves extracting spiking activity within the recorded signals from an ensemble of neurons and transmitting only spike counts over an adequate interval. However, for brain-computer interface (BCI) applications utilizing continuous local field potentials (LFPs) for cognitive decoding, the volume of neural data to be transmitted to a computer imposes relatively high data rate requirements. This is particularly true for BCIs employing high-density intracortical recordings with hundreds or thousands of electrodes. This article introduces the first autoencoder-based compression digital circuit for the efficient transmission of LFP neural signals. Various algorithmic and architectural-level optimizations are implemented to significantly reduce the computational complexity and memory requirements of the designed in vivo compression circuit. This circuit employs an autoencoder-based neural network, providing a robust signal reconstruction. The application-specific integrated circuit (ASIC) of the in vivo compression logic occupies the smallest silicon area and consumes the lowest power among the reported state-of-the-art compression ASICs. Additionally, it offers a higher compression rate and a superior signal-to-noise and distortion ratio.