microsoft

microsoft-drops-ai-sales-targets-in-half-after-salespeople-miss-their-quotas

Microsoft drops AI sales targets in half after salespeople miss their quotas

agentic AI, AI, AI adoption, AI agents, AI infrastructure, AI spending, azure, Biz & IT, Cloud Computing, copilot, enterprise AI, foundry, generative ai, machine learning, microsoft, Microsoft Copilot, simulated reasoning, SR models / /

Microsoft has lowered sales growth targets for its AI agent products after many salespeople missed their quotas in the fiscal year ending in June, according to a report Wednesday from The Information. The adjustment is reportedly unusual for Microsoft, and it comes after the company missed a number of ambitious sales goals for its AI offerings.

AI agents are specialized implementations of AI language models designed to perform multistep tasks autonomously rather than simply responding to single prompts. So-called “agentic” features have been central to Microsoft’s 2025 sales pitch: At its Build conference in May, the company declared that it has entered “the era of AI agents.”

The company has promised customers that agents could automate complex tasks, such as generating dashboards from sales data or writing customer reports. At its Ignite conference in November, Microsoft announced new features like Word, Excel, and PowerPoint agents in Microsoft 365 Copilot, along with tools for building and deploying agents through Azure AI Foundry and Copilot Studio. But as the year draws to a close, that promise has proven harder to deliver than the company expected.

According to The Information, one US Azure sales unit set quotas for salespeople to increase customer spending on a product called Foundry, which helps customers develop AI applications, by 50 percent. Less than a fifth of salespeople in that unit met their Foundry sales growth targets. In July, Microsoft lowered those targets to roughly 25 percent growth for the current fiscal year. In another US Azure unit, most salespeople failed to meet an earlier quota to double Foundry sales, and Microsoft cut their quotas to 50 percent for the current fiscal year.

Microsoft drops AI sales targets in half after salespeople miss their quotas Read More »

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Even Microsoft’s retro holiday sweaters are having Copilot forced upon them

copilot, culture, microsoft, Tech, Windows / /

I can take or leave some of the things that Microsoft is doing with Windows 11 these days, but I do usually enjoy the company’s yearly limited-time holiday sweater releases. Usually crafted around a specific image or product from the company’s ’90s-and-early-2000s heyday—2022’s sweater was Clippy themed, and 2023’s was just the Windows XP Bliss wallpaper in sweater form—the sweaters usually hit the exact combination of dorky/cute/recognizable that makes for a good holiday party conversation starter.

Microsoft is reviving the tradition for 2025 after taking a year off, and the design for this year’s flagship $80 sweater is mostly in line with what the company has done in past years. The 2025 “Artifact Holiday Sweater” revives multiple pixelated icons that Windows 3.1-to-XP users will recognize, including Notepad, Reversi, Paint, MS-DOS, Internet Explorer, and even the MSN butterfly logo. Clippy is, once again, front and center, looking happy to be included.

Not all of the icons are from Microsoft’s past; a sunglasses-wearing emoji, a “50” in the style of the old flying Windows icon (for Microsoft’s 50th anniversary), and a Minecraft Creeper face all nod to the company’s more modern products. But the only one I really take issue with is on the right sleeve, where Microsoft has stuck a pixelated monochrome icon for its Copilot AI assistant.

Even Microsoft’s retro holiday sweaters are having Copilot forced upon them Read More »

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Microsoft makes Zork I, II, and III open source under MIT License

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Zork, the classic text-based adventure game of incalculable influence, has been made available under the MIT License, along with the sequels Zork II and Zork III.

The move to take these Zork games open source comes as the result of the shared work of the Xbox and Activision teams along with Microsoft’s Open Source Programs Office (OSPO). Parent company Microsoft owns the intellectual property for the franchise.

Only the code itself has been made open source. Ancillary items like commercial packaging and marketing assets and materials remain proprietary, as do related trademarks and brands.

“Rather than creating new repositories, we’re contributing directly to history. In collaboration with Jason Scott, the well-known digital archivist of Internet Archive fame, we have officially submitted upstream pull requests to the historical source repositories of Zork I, Zork II, and Zork III. Those pull requests add a clear MIT LICENSE and formally document the open-source grant,” says the announcement co-written by Stacy Haffner (director of the OSPO at Microsoft) and Scott Hanselman (VP of Developer Community at the company).

Microsoft gained control of the Zork IP when it acquired Activision in 2022; Activision had come to own it when it acquired original publisher Infocom in the late ’80s. There was an attempt to sell Zork publishing rights directly to Microsoft even earlier in the ’80s, as founder Bill Gates was a big Zork fan, but it fell through, so it’s funny that it eventually ended up in the same place.

To be clear, this is not the first time the original Zork source code has been available to the general public. Scott uploaded it to GitHub in 2019, but the license situation was unresolved, and Activision or Microsoft could have issued a takedown request had they wished to.

Now that’s obviously not at risk of happening anymore.

Microsoft makes Zork I, II, and III open source under MIT License Read More »

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Critics scoff after Microsoft warns AI feature can infect machines and pilfer data

AI, Biz & IT, copilot, Data breaches, large language models, malware, microsoft, Security, vulnerabilities, Windows / /

Integration of Copilot Actions into Windows is off by default, but for how long?

Credit: Photographer: Chona Kasinger/Bloomberg via Getty Images

Microsoft’s warning on Tuesday that an experimental AI agent integrated into Windows can infect devices and pilfer sensitive user data has set off a familiar response from security-minded critics: Why is Big Tech so intent on pushing new features before their dangerous behaviors can be fully understood and contained?

As reported Tuesday, Microsoft introduced Copilot Actions, a new set of “experimental agentic features” that, when enabled, perform “everyday tasks like organizing files, scheduling meetings, or sending emails,” and provide “an active digital collaborator that can carry out complex tasks for you to enhance efficiency and productivity.”

Hallucinations and prompt injections apply

The fanfare, however, came with a significant caveat. Microsoft recommended users enable Copilot Actions only “if you understand the security implications outlined.”

The admonition is based on known defects inherent in most large language models, including Copilot, as researchers have repeatedly demonstrated.

One common defect of LLMs causes them to provide factually erroneous and illogical answers, sometimes even to the most basic questions. This propensity for hallucinations, as the behavior has come to be called, means users can’t trust the output of Copilot, Gemini, Claude, or any other AI assistant and instead must independently confirm it.

Another common LLM landmine is the prompt injection, a class of bug that allows hackers to plant malicious instructions in websites, resumes, and emails. LLMs are programmed to follow directions so eagerly that they are unable to discern those in valid user prompts from those contained in untrusted, third-party content created by attackers. As a result, the LLMs give the attackers the same deference as users.

Both flaws can be exploited in attacks that exfiltrate sensitive data, run malicious code, and steal cryptocurrency. So far, these vulnerabilities have proved impossible for developers to prevent and, in many cases, can only be fixed using bug-specific workarounds developed once a vulnerability has been discovered.

That, in turn, led to this whopper of a disclosure in Microsoft’s post from Tuesday:

“As these capabilities are introduced, AI models still face functional limitations in terms of how they behave and occasionally may hallucinate and produce unexpected outputs,” Microsoft said. “Additionally, agentic AI applications introduce novel security risks, such as cross-prompt injection (XPIA), where malicious content embedded in UI elements or documents can override agent instructions, leading to unintended actions like data exfiltration or malware installation.”

Microsoft indicated that only experienced users should enable Copilot Actions, which is currently available only in beta versions of Windows. The company, however, didn’t describe what type of training or experience such users should have or what actions they should take to prevent their devices from being compromised. I asked Microsoft to provide these details, and the company declined.

Like “macros on Marvel superhero crack”

Some security experts questioned the value of the warnings in Tuesday’s post, comparing them to warnings Microsoft has provided for decades about the danger of using macros in Office apps. Despite the long-standing advice, macros have remained among the lowest-hanging fruit for hackers out to surreptitiously install malware on Windows machines. One reason for this is that Microsoft has made macros so central to productivity that many users can’t do without them.

“Microsoft saying ‘don’t enable macros, they’re dangerous’… has never worked well,” independent researcher Kevin Beaumont said. “This is macros on Marvel superhero crack.”

Beaumont, who is regularly hired to respond to major Windows network compromises inside enterprises, also questioned whether Microsoft will provide a means for admins to adequately restrict Copilot Actions on end-user machines or to identify machines in a network that have the feature turned on.

A Microsoft spokesperson said IT admins will be able to enable or disable an agent workspace at both account and device levels, using Intune or other MDM (Mobile Device Management) apps.

Critics voiced other concerns, including the difficulty for even experienced users to detect exploitation attacks targeting the AI agents they’re using.

“I don’t see how users are going to prevent anything of the sort they are referring to, beyond not surfing the web I guess,” researcher Guillaume Rossolini said.

Microsoft has stressed that Copilot Actions is an experimental feature that’s turned off by default. That design was likely chosen to limit its access to users with the experience required to understand its risks. Critics, however, noted that previous experimental features—Copilot, for instance—regularly become default capabilities for all users over time. Once that’s done, users who don’t trust the feature are often required to invest time developing unsupported ways to remove the features.

Sound but lofty goals

Most of Tuesday’s post focused on Microsoft’s overall strategy for securing agentic features in Windows. Goals for such features include:

  • Non-repudiation, meaning all actions and behaviors must be “observable and distinguishable from those taken by a user”
  • Agents must preserve confidentiality when they collect, aggregate, or otherwise utilize user data
  • Agents must receive user approval when accessing user data or taking actions

The goals are sound, but ultimately they depend on users reading the dialog windows that warn of the risks and require careful approval before proceeding. That, in turn, diminishes the value of the protection for many users.

“The usual caveat applies to such mechanisms that rely on users clicking through a permission prompt,” Earlence Fernandes, a University of California, San Diego professor specializing in AI security, told Ars. “Sometimes those users don’t fully understand what is going on, or they might just get habituated and click ‘yes’ all the time. At which point, the security boundary is not really a boundary.”

As demonstrated by the rash of “ClickFix” attacks, many users can be tricked into following extremely dangerous instructions. While more experienced users (including a fair number of Ars commenters) blame the victims falling for such scams, these incidents are inevitable for a host of reasons. In some cases, even careful users are fatigued or under emotional distress and slip up as a result. Other users simply lack the knowledge to make informed decisions.

Microsoft’s warning, one critic said, amounts to little more than a CYA (short for cover your ass), a legal maneuver that attempts to shield a party from liability.

“Microsoft (like the rest of the industry) has no idea how to stop prompt injection or hallucinations, which makes it fundamentally unfit for almost anything serious,” critic Reed Mideke said. “The solution? Shift liability to the user. Just like every LLM chatbot has a ‘oh by the way, if you use this for anything important be sure to verify the answers” disclaimer, never mind that you wouldn’t need the chatbot in the first place if you knew the answer.”

As Mideke indicated, most of the criticisms extend to AI offerings other companies—including Apple, Google, and Meta—are integrating into their products. Frequently, these integrations begin as optional features and eventually become default capabilities whether users want them or not.

Photo of Dan Goodin

Dan Goodin is Senior Security Editor at Ars Technica, where he oversees coverage of malware, computer espionage, botnets, hardware hacking, encryption, and passwords. In his spare time, he enjoys gardening, cooking, and following the independent music scene. Dan is based in San Francisco. Follow him at here on Mastodon and here on Bluesky. Contact him on Signal at DanArs.82.

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Tech giants pour billions into Anthropic as circular AI investments roll on

AI, AI bubble, AI chips, AI infrastructure, Anthropic, azure, Biz & IT, Cloud Computing, datacenters, enterprise AI, machine learning, microsoft, NVIDIA, openai, sam altman, Satya Nadella / /

On Tuesday, Microsoft and Nvidia announced plans to invest in Anthropic under a new partnership that includes a $30 billion commitment by the Claude maker to use Microsoft’s cloud services. Nvidia will commit up to $10 billion to Anthropic and Microsoft up to $5 billion, with both companies investing in Anthropic’s next funding round.

The deal brings together two companies that have backed OpenAI and connects them more closely to one of the ChatGPT maker’s main competitors. Microsoft CEO Satya Nadella said in a video that OpenAI “remains a critical partner,” while adding that the companies will increasingly be customers of each other.

“We will use Anthropic models, they will use our infrastructure, and we’ll go to market together,” Nadella said.

Anthropic, Microsoft, and NVIDIA announce partnerships.

The move follows OpenAI’s recent restructuring that gave the company greater distance from its non-profit origins. OpenAI has since announced a $38 billion deal to buy cloud services from Amazon.com as the company becomes less dependent on Microsoft. OpenAI CEO Sam Altman has said the company plans to spend $1.4 trillion to develop 30 gigawatts of computing resources.

Tech giants pour billions into Anthropic as circular AI investments roll on Read More »

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Microsoft tries to head off the “novel security risks” of Windows 11 AI agents

AI, copilot, microsoft, Tech, Windows 11, windows 11 25h2 / /

Microsoft has been adding AI features to Windows 11 for years, but things have recently entered a new phase, with both generative and so-called “agentic” AI features working their way deeper into the bedrock of the operating system. A new build of Windows 11 released to Windows Insider Program testers yesterday includes a new “experimental agentic features” toggle in the Settings to support a feature called Copilot Actions, and Microsoft has published a detailed support article detailing more about just how those “experimental agentic features” will work.

If you’re not familiar, “agentic” is a buzzword that Microsoft has used repeatedly to describe its future ambitions for Windows 11—in plainer language, these agents are meant to accomplish assigned tasks in the background, allowing the user’s attention to be turned elsewhere. Microsoft says it wants agents to be capable of “everyday tasks like organizing files, scheduling meetings, or sending emails,” and that Copilot Actions should give you “an active digital collaborator that can carry out complex tasks for you to enhance efficiency and productivity.”

But like other kinds of AI, these agents can be prone to error and confabulations and will often proceed as if they know what they’re doing even when they don’t. They also present, in Microsoft’s own words, “novel security risks,” mostly related to what can happen if an attacker is able to give instructions to one of these agents. As a result, Microsoft’s implementation walks a tightrope between giving these agents access to your files and cordoning them off from the rest of the system.

Possible risks and attempted fixes

For now, these “experimental agentic features” are optional, only available in early test builds of Windows 11, and off by default. Credit: Microsoft

For example, AI agents running on a PC will be given their own user accounts separate from your personal account, ensuring that they don’t have permission to change everything on the system and giving them their own “desktop” to work with that won’t interfere with what you’re working with on your screen. Users need to approve requests for their data, and “all actions of an agent are observable and distinguishable from those taken by a user.” Microsoft also says agents need to be able to produce logs of their activities and “should provide a means to supervise their activities,” including showing users a list of actions they’ll take to accomplish a multi-step task.

Microsoft tries to head off the “novel security risks” of Windows 11 AI agents Read More »

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OpenAI signs massive AI compute deal with Amazon

AI, AI chips, AI infrastructure, Amazon, AWS, Biz & IT, chatbots, datacenters, generative ai, Google, large language models, machine learning, microsoft, NVIDIA, openai, oracle, sam altman / /

On Monday, OpenAI announced it has signed a seven-year, $38 billion deal to buy cloud services from Amazon Web Services to power products like ChatGPT and Sora. It’s the company’s first big computing deal after a fundamental restructuring last week that gave OpenAI more operational and financial freedom from Microsoft.

The agreement gives OpenAI access to hundreds of thousands of Nvidia graphics processors to train and run its AI models. “Scaling frontier AI requires massive, reliable compute,” OpenAI CEO Sam Altman said in a statement. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

OpenAI will reportedly use Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond. Amazon plans to roll out hundreds of thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators, in data clusters built to power ChatGPT’s responses, generate AI videos, and train OpenAI’s next wave of models.

Wall Street apparently liked the deal, because Amazon shares hit an all-time high on Monday morning. Meanwhile, shares for long-time OpenAI investor and partner Microsoft briefly dipped following the announcement.

Massive AI compute requirements

It’s no secret that running generative AI models for hundreds of millions of people currently requires a lot of computing power. Amid chip shortages over the past few years, finding sources of that computing muscle has been tricky. OpenAI is reportedly working on its own GPU hardware to help alleviate the strain.

But for now, the company needs to find new sources of Nvidia chips, which accelerate AI computations. Altman has previously said that the company plans to spend $1.4 trillion to develop 30 gigawatts of computing resources, an amount that is enough to roughly power 25 million US homes, according to Reuters.

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ChatGPT maker reportedly eyes $1 trillion IPO despite major quarterly losses

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An OpenAI spokesperson told Reuters that “an IPO is not our focus, so we could not possibly have set a date,” adding that the company is “building a durable business and advancing our mission so everyone benefits from AGI.”

Revenue grows as losses mount

The IPO preparations follow a restructuring of OpenAI completed on October 28 that reduced the company’s reliance on Microsoft, which has committed to investments of $13 billion and now owns about 27 percent of the company. OpenAI was most recently valued around $500 billion in private markets.

OpenAI started as a nonprofit in 2015, then added a for-profit arm a few years later with nonprofit oversight. Under the new structure, OpenAI is still controlled by a nonprofit, now called the OpenAI Foundation, but it gives the nonprofit a 26 percent stake in OpenAI Group and a warrant for additional shares if the company hits certain milestones.

A successful OpenAI IPO could represent a substantial gain for investors, including Microsoft, SoftBank, Thrive Capital, and Abu Dhabi’s MGX. But even so, OpenAI faces an uphill financial battle ahead. The ChatGPT maker expects to reach about $20 billion in revenue by year-end, according to people familiar with the company’s finances who spoke with Reuters, but its quarterly losses are significant.

Microsoft’s earnings filing on Wednesday offered a glimpse at the scale of those losses. The company reported that its share of OpenAI losses reduced Microsoft’s net income by $3.1 billion in the quarter that ended September 30. Since Microsoft owns 27 percent of OpenAI under the new structure, that suggests OpenAI lost about $11.5 billion during the quarter, as noted by The Register. That quarterly loss figure exceeds half of OpenAI’s expected revenue for the entire year.

ChatGPT maker reportedly eyes $1 trillion IPO despite major quarterly losses Read More »

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Nvidia hits record $5 trillion mark as CEO dismisses AI bubble concerns

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Partnerships and government contracts fuel optimism

At the GTC conference on Tuesday, Nvidia’s CEO went out of his way to repeatedly praise Donald Trump and his policies for accelerating domestic tech investment while warning that excluding China from Nvidia’s ecosystem could limit US access to half the world’s AI developers. The overall event stressed Nvidia’s role as an American company, with Huang even nodding to Trump’s signature slogan in his sign-off by thanking the audience for “making America great again.”

Trump’s cooperation is paramount for Nvidia because US export controls have effectively blocked Nvidia’s AI chips from China, costing the company billions of dollars in revenue. Bob O’Donnell of TECHnalysis Research told Reuters that “Nvidia clearly brought their story to DC to both educate and gain favor with the US government. They managed to hit most of the hottest and most influential topics in tech.”

Beyond the political messaging, Huang announced a series of partnerships and deals that apparently helped ease investor concerns about Nvidia’s future. The company announced collaborations with Uber Technologies, Palantir Technologies, and CrowdStrike Holdings, among others. Nvidia also revealed a $1 billion investment in Nokia to support the telecommunications company’s shift toward AI and 6G networking.

The agreement with Uber will power a fleet of 100,000 self-driving vehicles with Nvidia technology, with automaker Stellantis among the first to deliver the robotaxis. Palantir will pair Nvidia’s technology with its Ontology platform to use AI techniques for logistics insights, with Lowe’s as an early adopter. Eli Lilly plans to build what Nvidia described as the most powerful supercomputer owned and operated by a pharmaceutical company, relying on more than 1,000 Blackwell AI accelerator chips.

The $5 trillion valuation surpasses the total cryptocurrency market value and equals roughly half the size of the pan European Stoxx 600 equities index, Reuters notes. At current prices, Huang’s stake in Nvidia would be worth about $179.2 billion, making him the world’s eighth-richest person.

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Microsoft’s Mico heightens the risks of parasocial LLM relationships

AI, Avatar, copilot, mico, microsoft / /

While mass media like radio, movies, and television can all feed into parasocial relationships, the Internet and smartphone revolutions have supercharged the opportunities we all have to feel like an online stranger is a close, personal confidante. From YouTube and podcast personalities to Instagram influencers or even your favorite blogger/journalist (hi), it’s easy to feel like you have a close connection with the people who create the content you see online every day.

After spending hours watching this TikTok personality, I trust her implicitly to sell me a purse.

Credit: Getty Images

After spending hours watching this TikTok personality, I trust her implicitly to sell me a purse. Credit: Getty Images

Viewing all this content on a smartphone can flatten all these media and real-life personalities into a kind of undifferentiated media sludge. It can be all too easy to slot an audio message from your romantic partner into the same mental box as a stranger chatting about video games in a podcast. “When my phone does little mating calls of pings and buzzes, it could bring me updates from people I love, or show me alerts I never asked for from corporations hungry for my attention,” Julie Beck writes in an excellent Atlantic article about this phenomenon. “Picking my loved ones out of the never-ending stream of stuff on my phone requires extra effort.”

This is the world Mico seems to be trying to slide into, turning Copilot into another not-quite-real relationship mediated through your mobile device. But unlike the Instagram model who never seems to acknowledge your comments, Mico is always there to respond with a friendly smile and a warm, soothing voice.

AI that “earns your trust”

Text-based AI interfaces are already frighteningly good at faking human personality in a way that encourages this kind of parasocial relationship, sometimes with disastrous results. But adding a friendly, Pixar-like face to Copilot’s voice mode may make it much easier to be sucked into feeling like Copilot isn’t just a neural network but a real, caring personality—one you might even start thinking of the same way you’d think of the real loved ones in your life.

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Microsoft makes Copilot “human-centered” with a ‘90s-style animated assistant

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Microsoft said earlier this month that it wanted to add better voice controls to Copilot, Windows 11’s built-in chatbot-slash-virtual assistant. As described, this new version of Copilot sounds an awful lot like another stab at Cortana, the voice assistant that Microsoft tried (and failed) to get people to use in Windows 10 in the mid-to-late 2010s.

Turns out that the company isn’t done trying to reformulate and revive ideas it has already tried before. As part of a push toward what it calls “human-centered AI,” Microsoft is now putting a face on Copilot. Literally, a face: “Mico” is an “expressive, customizable, and warm” blob with a face that dynamically “listens, reacts, and even changes colors to reflect your interactions” as you interact with Copilot. (Another important adjective for Mico: “optional.”)

Mico (rhymes with “pico”) recalls old digital assistants like Clippy, Microsoft Bob, and Rover, ideas that Microsoft tried in the ’90s and early 2000s before mostly abandoning them.

Microsoft clearly thinks that backing these ideas with language and/or reasoning models will help Copilot succeed where both Cortana and Clippy failed. Part of the reason these assistants were viewed as annoying rather than helpful is that they could respond to a finite number of possible inputs or situations, and they didn’t even help in those situations most of the time because they could only respond to a small number of context clues. I don’t have hard evidence for this, but I’d bet that the experience of dismissing Clippy’s “It looks like you’re writing a letter!” prompts is near-universal among PC users of a certain age.

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AI-powered features begin creeping deeper into the bedrock of Windows 11

copilot, microsoft, Tech, Windows 11, windows 11 24h2, windows 11 25h2 / /

everything old is new again

Copilot expands with an emphasis on creating and editing files, voice input.

Microsoft is hoping that Copilot will succeed as a voice-driven assistant where Cortana failed. Credit: Microsoft

Microsoft is hoping that Copilot will succeed as a voice-driven assistant where Cortana failed. Credit: Microsoft

Like virtually every major Windows announcement in the last three years, the spate of features that Microsoft announced for the operating system today all revolve around generative AI. In particular, they’re concerned with the company’s more recent preoccupation with “agentic” AI, an industry buzzword for “telling AI-powered software to perform a task, which it then does in the background while you move on to other things.”

But the overarching impression I got, both from reading the announcement and sitting through a press briefing earlier this month, is that Microsoft is using language models and other generative AI technologies to try again with Cortana, Microsoft’s failed and discontinued entry in the voice assistant wars of the 2010s.

According to Microsoft’s Consumer Chief Marketing Officer Yusuf Mehdi, “AI PCs” should be able to recognize input “naturally, in text or voice,” to be able to guide users based on what’s on their screens at any given moment, and that AI assistants “should be able to take action on your behalf.”

The biggest of today’s announcements is the introduction of a new “Hey, Copilot” activation phrase for Windows 11 PCs, which once enabled allows users to summon the chatbot using only their voice rather than a mouse or keyboard (if you do want to use the keyboard, either the Copilot key or the same Windows + C keyboard shortcut that used to bring up Cortana will also summon Copilot). Saying “goodbye” will dismiss Copilot when you’re done working with it.

Macs and most smartphones have sported similar functionality for a while now, but Microsoft is obviously hoping that having Copilot answer those questions instead of Cortana will lead to success rather than another failure.

The key limitation of the original Cortana—plus Siri, Alexa, and the rest of their ilk—is that it could only really do a relatively limited and pre-determined list of actions. Complex queries, or anything the assistants don’t understand, often gets bounced to a general web search. The results of that search may or may not accomplish what you wanted, but it does ultimately shift the onus back on the user to find and follow those directions.

To make Copilot more useful, Microsoft has also announced that Copilot Vision is being rolled out worldwide “in all markets where Copilot is offered” (it’s been available in the US since mid-June). Copilot Vision will read the contents of a screen or an app window and can attempt to offer useful guidance or feedback, like walking you through an obscure task in Excel or making suggestions based on a group of photos or a list of items. (Microsoft additionally announced a beta for Gaming Copilot, a sort of offshoot of Copilot Vision intended specifically for walkthroughs and advice for whatever game you happen to be playing.)

Beyond these tweaks or wider rollouts for existing features, Microsoft is also testing a few new AI and Copilot-related additions that aim to fundamentally change how users interact with their Windows PCs by reading and editing files.

All of the features Microsoft is announcing today are intended for all Windows 11 PCs, not just those that meet the stricter hardware requirements of the Copilot+ PC label. That gives them a much wider potential reach than things like Recall or Click to Do, and it makes knowing what these features do and how they safeguard security and privacy that much more important.

AI features work their way into the heart of Windows

Microsoft wants general-purpose AI agents to be able to create and modify files for you, among other things, working in the background while you move on to other tasks. Credit: Microsoft

Whether you’re talking about the Copilot app, the generative AI features added to apps like Notepad and Paint, or the data-scraping Windows Recall feature, most of the AI additions to Windows in the last few years have been app-specific, or cordoned off in some way from core Windows features like the taskbar and File Explorer.

But AI features are increasingly working their way into bedrock Windows features like the taskbar and Start menu, and being given capabilities that allow them to analyze or edit files or even perform file management tasks.

The standard Search field that has been part of Windows 10 and Windows 11 for the last decade, for example, is being transformed into an “Ask Copilot” field; this feature will still be able to look through local files just like the current version of the Search box, but Microsoft also envisions it as a keyboard-driven interface for Copilot for the times when you can’t or don’t want to use your voice. (We don’t know whether the “old” search functionality lives on in the Start menu or as an optional fallback for people who disable Copilot, at least not yet.)

A feature called Copilot Actions will also expand the number of ways that Copilot can interact with local files on your PC. Microsoft cites “sorting through recent vacation photos” and extracting information from PDFs and other documents as two possible use cases, and that this early preview version will focus on “a narrow set of use cases.” But it’s meant to be “a general-purpose agent” capable of “interacting with desktop and web applications.” This gives it a lot of latitude to augment or replace basic keyboard-and-mouse input for some interactions.

Screenshots of a Windows 11 testing build showed Copilot taking over the area of the taskbar that is currently reserved for the Search field. Credit: Microsoft

Finally, Microsoft is taking another stab at allowing Copilot to change the settings on your PC, something that earlier versions were able to do but were removed in a subsequent iteration. Copilot will attempt to respond to plain-language questions about your PC settings with a link to the appropriate part of Windows’ large, labyrinthine Settings app.

These new features dovetail with others Microsoft has been testing for a few weeks or months now. Copilot Connectors, rolled out to Windows Insiders earlier this month, can give Copilot access to email and file-sharing services like Gmail and Dropbox. New document creation features allow Copilot to export the contents of a Copilot chat into a Word or PDF document, Excel spreadsheet, or PowerPoint deck for more refinement and editing. And AI actions in the File Explorer appear in Windows’ right-click menu and allow for the direct manipulation of files, including batch-editing images and summarizing documents. Together with the Copilot Vision features that enable Copilot to see the full contents of Office documents rather than just the on-screen portions, all of these features inject AI into more basic everyday tasks, rather than cordoning them off in individual apps.

Per usual, we don’t know exactly when any of these new features will roll out to the general public, and some may never be available outside of the Windows Insider program. None of them are currently baked into the Windows 11 25H2 update, at least not the version that the company is currently distributing through its Release Preview channel.

Learning the lessons of Recall

Microsoft at least seems to have learned lessons from the botched rollout of Windows Recall last year.

If you didn’t follow along: Microsoft’s initial plan had been to roll out Recall with the first wave of Copilot+ PCs, but without sending it through the Windows Insider Preview program first. This program normally gives power users, developers, security researchers, and others the opportunity to kick the tires on upcoming Windows features before they’re launched, giving Microsoft feedback on bugs, security holes, or other flaws before rolling them out to all Windows PCs.

But security researchers who did manage to get their hands on the early, nearly launched version of Recall discovered a deeply flawed feature that preserved too much personal information and was trivially easy to exploit—a plain-text file with OCR text from all of a user’s PC usage could be grabbed by pretty much anybody with access to the PC, either in-person or remote. It was also enabled by default on PCs that supported it, forcing users to manually opt out if they didn’t want to use it.

In the end, Microsoft pulled that version of Recall, took nearly a year to overhaul its security architecture, and spent months letting the feature make its way through the Windows Insider Preview channels before finally rolling it out to Copilot+ PCs. The resulting product still presents some risks to user privacy, as does any feature that promises to screenshot and store months of history about how you use your PC, but it’s substantially more refined, the most egregious security holes have been closed, and it’s off by default.

Copilot Actions are, at least for now, also disabled by default. And Microsoft Corporate Vice President of Windows Security Dana Huang put up a lengthy accompanying post explaining several of the steps Microsoft has taken to protect user privacy and security when using Copilot Actions. These include running AI agents with their own dedicated user accounts to reduce their access to data in your user folder; mandatory code-signing; and giving agents the fewest privileges they need to do their jobs. All of the agents’ activities will also be documented, so users can verify what actions have been taken and correct any errors.

Whether these security and privacy promises are good enough is an open question, but unlike the initial version of Recall, all of these new features will be sent out through the Windows Insider channels for testing first. If there are serious flaws, they’ll be out in public early on, rather than dropped on users unawares.

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Andrew is a Senior Technology Reporter at Ars Technica, with a focus on consumer tech including computer hardware and in-depth reviews of operating systems like Windows and macOS. Andrew lives in Philadelphia and co-hosts a weekly book podcast called Overdue.

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