Microsoft's Copilot gets access to local Windows files and OS-level actions under 'Hybrid Intelligence'

Microsoft is upgrading Copilot to read local files on a Windows PC and take actions across the operating system, the company showed at its Windows and Surface event. Microsoft describes the approach as "Hybrid Intelligence," in which apps and tools use a mix of local and cloud AI models to complete tasks efficiently.

What Microsoft showed

Jacob Andreou, Microsoft's EVP of Copilot, presented a recorded video demo on stage. In it, he asked Microsoft's Autopilot tool to help with filing taxes. He told the AI agent that he had received an email from his accountant and asked Autopilot to get her what she needed. The demo was a pre-recorded walkthrough, not a live test, and the source text is truncated before the rest of the sequence.

Autopilot is part of Microsoft's broader Copilot push, which The Verge has previously described as a "super app" combining chat, coding, and agent features.

What is confirmed and what is not

Confirmed by Microsoft at the event:

• Copilot will gain access to local files on a PC.
• Copilot will be able to take actions across Windows.
• Microsoft is framing this as "Hybrid Intelligence," using both local and cloud models.

Not disclosed in the available reporting:

• Models: which local and cloud models power the feature, and their parameter counts or context windows
• Routing: how tasks are divided between on-device and cloud processing
• Pricing: not yet disclosed
• Availability: rollout timing, supported Windows versions, and hardware requirements, such as whether a neural processing unit is needed
• Permissions: how users grant, scope, or revoke file and OS access
• Benchmarks: no performance or accuracy figures were provided

This is a product and platform update to Copilot, not the release of a new model, so no model version, benchmark scores, or token pricing apply.

What this means

Giving an assistant file access and OS-level action rights moves Copilot from a chat interface toward an agent that operates the machine. That is a larger step than answering questions, because errors can now change or expose real user data.

The "Hybrid Intelligence" framing points to a design where sensitive or simple tasks may run locally while heavier reasoning goes to the cloud. Microsoft has not yet said where that line sits or what data leaves the device. That detail will determine whether enterprise IT teams and privacy-conscious users adopt the feature.

The tax demo shows the target use case: multi-step tasks that combine email, local documents, and actions. A scripted demo does not show reliability. Until Microsoft publishes permission controls, rollout terms, and independent testing is possible, treat the capability claims as unverified.

For developers and IT administrators, the open questions are practical: how agent actions are logged, what policy controls exist, and whether third-party apps can plug into the same local/cloud routing.