Copilot will be able to read, organise and change files on Windows PCs with user permission, under a Microsoft plan to split AI work between the device and the cloud.
Microsoft outlined the changes in Building Windows for hybrid intelligence, a blog post by Pavan Davuluri, executive vice president of Windows and Devices. Microsoft says the hybrid approach will cut AI costs and keep more data on the device.
Three Copilot capabilities are due on Copilot+ PCs in the coming months. Local context lets Copilot draw on files and recent activity on the PC. Local actions let it organise files, run diagnostics, troubleshoot and carry out workflows on the device.
Local models let Copilot run some tasks on AI models installed on the PC, reaching the cloud when needed.
Microsoft said more than 40% of laptops being built for business are now Copilot+ PCs. Across those machines, more than 2 trillion inferences run locally each month.
Containers for agents
Microsoft also made Microsoft Execution Containers (MXC) generally available on Windows 11. MXC lets organisations define which files and networks an agent can reach, with those policies enforced at runtime.
Davuluri said agent security on Windows rests on containment, identity and manageability. Identity lets IT distinguish an agent's activity from that of the person using the device.
Manageability feeds agent activity into Microsoft Agent 365 and Intune, so organisations can set policy, monitor risk and govern agents. Microsoft notes that governance at scale may require additional services.
Containment options range from process and session isolation to WSLc, virtual machines and Windows 365 for Agents.
Agents that already support MXC include OpenAI's Codex, GitHub Copilot, OpenClaw, Replit, LM Studio, NVIDIA's OpenShell and Unsloth AI. Anthropic's Claude Code, Box, Egnyte, Heidi Health, Manus and Perplexity are among those due to add support.
On the model side, Microsoft is bringing its MAI Code 1.1 Flash coding model to the device and adding llama.cpp support to the Windows ML runtime. GitHub's HydraFusion router will draw on local models in an experimental preview later in October.
At the top end, DGX Station for Windows, due later this year, can run models of more than a trillion parameters. Microsoft said it can serve 32 or more agents at once, letting organisations keep sensitive data and intellectual property in their own environment.
Surface Laptop Ultra and RTX Spark laptops from ASUS, Dell, HP, Lenovo and MSI are on pre-order and begin shipping on 16 October.
Tom Mainelli, group vice president at IDC, said Microsoft was offering "a level of security and traceability in these processes that should give companies confidence in using them."