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Microsoft is giving Copilot more control over Windows and your files

Confirmed

Technology Desk

In Short: Microsoft is expanding Copilot's capabilities, allowing it to interact more deeply with local files and take actions across the Windows operating system.

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Photo: Microsoft / Wikimedia Commons (Public domain)

Microsoft is expanding Copilot's capabilities, allowing it to interact more deeply with local files and take actions across the Windows operating system. At a recent event, the company showcased an upgraded Copilot AI system that will have access to local files and the ability to perform actions across the OS.

Administrators will have 28 new Group Policy settings in Windows 11 version 26H2, giving them more control over taskbar modifications, updates, and onboarding experiences. However, these new settings could lead to increased configuration drift and delayed security patching.

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Microsoft is also phasing out the Copilot+ PC branding on its latest Surface devices. The company launched the Copilot+ PC brand two years ago to identify AI-first computers with exclusive AI features, but it is no longer using the term on recent devices.

Microsoft Surface CVP Brett Ostrom told Windows Central that the new 12-inch Surface Pro and 13-inch Surface Laptop, which meet the system requirements for Copilot+ PCs, will not be called by that name anymore. Ostrom said, “These are not called Copilot Plus PCs.”

The Copilot+ PC branding required 16GB of RAM, 256GB of storage, and an integrated neural processing unit (NPU) with performance rated at 40 trillion operations per second (TOPS) or better. However, the brand struggled to differentiate itself in a market where AI features were becoming standard.

Microsoft is taking a more intentional approach to how it uses Copilot in Windows 11, reducing unnecessary entry points in apps like Snipping Tool, Photos, Widgets, and Notepad. The company is also listening to user complaints and is being more cautious about how it integrates AI into the operating system.

Microsoft is betting on local AI, with Nvidia as its partner, and is set to reveal more at its surprise fall event on October 7, 2026.

The company is also facing competition from Google's Gemini App, which is now available for Windows users.

Microsoft is rebranding Scout, the “always on personal agent” it launched within its 365 suite of apps, as Copilot, framing it as a one-stop-shop for AI-assisted work.

What this adds

Microsoft's decision to phase out the Copilot+ PC branding reflects the company's evolving strategy in integrating AI into its products.

The new Copilot features are expected to be rolled out over the next couple of months, according to Microsoft.

What's confirmed

What's still developing

Sources