Microsoft Is Preparing Copilot With Local Context and Actions in Windows
Microsoft introduced its “hybrid intelligence” direction for Copilot+ PC. With user consent, Copilot is expected to work with local content, perform actions in Windows, and use models running directly on the device.
On October 7, Microsoft introduced Copilot hybrid intelligence, a planned expansion of the Copilot assistant for Copilot+ PC computers. According to the company, once enabled by the user, the assistant is expected to use local context, perform actions across Windows, and also work with models running directly on the device.
The new capabilities will not become available immediately to all Windows 11 users. Microsoft says it will begin gradually rolling them out to Copilot+ PCs in the coming months. It has not yet published a fixed schedule, a list of supported regions, or a complete list of devices.
What Copilot hybrid intelligence is expected to bring
The announcement covers three planned areas. The first is local context: Copilot is expected to work with relevant files and the user’s recent activity on the computer. The second is local actions in Windows, meaning the ability to perform tasks directly in the operating system. The third part is the use of AI models running directly on the device.
Microsoft states that access to local content and the performance of actions will require user consent. However, the company has not yet specified the exact scope of permissions during the initial rollout: it is unclear which folders, applications, or system settings Copilot will be able to read or change by default.
Local processing may reduce the need to send some data to the cloud and could enable faster responses for certain tasks. Microsoft has also not stated the conditions under which data will be processed exclusively on the device and when it may be sent to cloud services.
Agent isolation through Microsoft Execution Containers
The announcement also includes the general availability of Microsoft Execution Containers, abbreviated as MXC, in Windows 11. This is infrastructure designed to restrict AI agents’ access to files and networks using rules enforced at runtime.
MXC is intended to address situations in which an agent needs to perform a specific task but should not receive unrestricted access to the system or network resources. Microsoft has not yet provided independent verification of this infrastructure’s security properties or the results of tests assessing the resilience of Copilot’s local actions against prompt abuse.
The shift from a chat assistant to software that can work with device content and perform system tasks increases the importance of clearly configured permissions and an understandable overview of completed steps. The specific operation of these mechanisms can only be evaluated after the features are made available to users.
Developer branch and next steps
Microsoft also announced an experimental preview of the hybrid approach, GitHub HydraFusion. It is expected to become available later in October for the GitHub Copilot app, Copilot CLI, and Visual Studio Code.
For Copilot hybrid intelligence, it will be important to monitor the rollout schedule for individual Copilot+ PCs, regional availability, and detailed permission settings. It also remains an open question whether and when Microsoft will expand these capabilities beyond the Copilot+ PC category.
Sources
- Windows Experience Blog – Microsoft’s official announcement about local context, local actions, local models, the gradual rollout schedule, and the general availability of MXC.
- NVIDIA Blog – Confirms the joint Microsoft and NVIDIA event, the general availability of MXC, and the broader context of local AI agents in Windows.
- The Verge – Independently reports on the introduction of Copilot’s expanded access to local files and actions in the operating system.
Verified and updated: 10/08/2026 06:19
