Microsoft shows Copilot upgrade that can use local files to take actions

Microsoft showed an upgrade to its Copilot AI system at its Windows and Surface event on 7 October 2026, according to The Verge. The upgrade gives Copilot access to local files on a Windows PC and the ability to take actions across the operating system. Microsoft calls the approach "Hybrid Intelligence."

Under Hybrid Intelligence, apps and tools rely on a mix of local and cloud AI models to complete tasks, according to The Verge. Jacob Andreou, Microsoft's executive vice president of Copilot, demonstrated the idea onstage with a video demo. He asked Microsoft's Autopilot tool to help him file his taxes and told the agent he had received an email from his accountant.

In the demo, Autopilot searched across folders to find the documents, renamed the files, zipped them into a folder, and drafted an email to the accountant with the zip file attached, The Verge reported. Andreou said features powered by Hybrid Intelligence will come to Copilot over the "next couple months."

Microsoft also showed a new Windows search experience that lets users take quick actions from the search bar, according to The Verge. The examples shown included turning on dark mode, turning up microphone volume with an in-line slider, and sending a text. Pavan Davuluri, Microsoft's Windows and Surface boss, said the experience will be available starting this fall on Windows 11 PCs.