Microsoft Gives Copilot Local File Context and OS-Wide Actions

Microsoft on October 7, 2026 announced that Copilot on Copilot+ PCs will gain local context from a user’s files and recent activity, the ability to take actions across Windows, and access to AI models running on the device, in a Windows Experience Blog post laying out what the company calls hybrid intelligence. The announcement, from Pavan Davuluri, Executive Vice President of Windows + Devices, extends the new Copilot Microsoft introduced on September 25, 2026, which is built around three experiences: Home, Code, and Autopilot.

Microsoft described three local capabilities. With local context, and with the user’s permission, Copilot can understand relevant content on the PC, including files and recent activity. With local actions, Copilot can work on the user’s behalf across the operating system, including organizing files, assessing device diagnostics, troubleshooting issues, coding, and carrying out workflows directly on the device.

With local models, Copilot can tap AI models running on the PC, using local compute for the right tasks while combining it with cloud intelligence when needed. Microsoft said Home can use local context to pull in files the…