Microsoft has started public testing of an AI-powered file search feature for Windows 11, granting users on the the Windows Insider Dev Channel with Copilot+ PCs access to smarter, privacy-focused search tools.
The feature, which leverages Neural Processing Units (NPUs) to process queries locally, ensuring offline functionality and maintaining data security. Neural Processing Units (NPUs), central to the AI search feature, are specialized hardware designed to accelerate machine learning tasks. By offloading intensive computations from the CPU, NPUs enable faster, more energy-efficient performance, making features like on-device AI search viable.
While currently limited to devices with Snapdragon processors, support for Intel and AMD Copilot+ PCs is expected in the near future.
Related: Microsoft Signals End of Free Windows 11 Upgrade and Windows 10 Office Support
The new AI search tool allows users to find files by describing their content in natural language, such as searching for “bridge at sunset” instead of using specific filenames.
Supported file formats include JPEG, PNG, PDF, TXT, and Excel files, making it versatile for everyday use. The feature integrates across Windows search interfaces, such as the taskbar, File Explorer, and Settings menu, offering a consistent experience for users.



Local Processing with Cloud Expansion on the Horizon
One of the key distinctions of Microsoft’s AI file search is its reliance on local processing, facilitated by NPUs embedded in Copilot+ devices.
This design ensures that users’ data remains private and accessible without an internet connection. Microsoft has emphasized that this approach aligns with their commitment to secure AI tools, addressing privacy concerns raised by cloud-based solutions.
Currently, the AI search tool works exclusively with indexed files on local storage. Users can configure indexed locations through the Settings menu under Privacy & security > Searching Windows.
Related: Microsoft’s Windows Recall AI Feature Still Has Severe Privacy Issues
Those seeking comprehensive device-wide indexing can enable the “Enhanced” option for broader search capabilities. In the coming updates, Microsoft plans to integrate cloud-based data sources like OneDrive into the search functionality, potentially shifting some processing to online systems.
According to Microsoft’s announcement on the Windows Insider blog, the rollout will expand incrementally. “This feature will gradually roll out to Windows Insiders on Snapdragon-powered Copilot+ PCs,” the company stated, highlighting its phased approach to deployment.
Productivity Tool Improvements in the Latest Insider Build
In addition to AI search, the latest Windows Insider Build 26120.2992 on the Dev channel introduces several updates aimed at enhancing user productivity. One notable feature is the new “Refine” option in the Click to Do tool.
By holding the Windows key and left-clicking on selected text, users can access context-sensitive options to rewrite or correct grammar directly. This tool expands upon Microsoft’s efforts to integrate AI-powered enhancements into everyday tasks, complementing their existing suite of tools like Microsoft 365 Copilot.

The build also includes refinements to File Explorer, Magnifier, and Task Manager, addressing user feedback and ensuring a more polished experience. These improvements reflect Microsoft’s strategy of embedding intelligent tools across its operating system to streamline workflows and reduce friction in daily tasks.

Microsoft’s Growing AI Ecosystem
The AI file search tool builds on leaked insights that hinted at more sophisticated search capabilities in Windows 11. Screenshots shared by an insider user revealed features such as contextual filters for file categories and options to locate documents based on collaborators or activity history.
While not directly tied to the current release, these features give a hint on Microsoft’s long-term vision for intelligent file management.
During the 2024 Microsoft Ignite conference, Pavan Davuluri, Chief of Windows, stated: “We will bring Microsoft 365 People, Files, and Calendar to your taskbar so your Graph data is just a click away.”
This aligns with Microsoft’s broader effort to make data from its ecosystem readily accessible, integrating tools like Microsoft 365 Copilot to bridge the gap between local and cloud-based workflows.
Related: Microsoft 365 Copilot AI Comes to Personal and Family Subscriptions for Extra Fee
At its core, Microsoft Graph plays a crucial role in these advancements. The API framework connects data across Microsoft 365 services, enabling AI tools to analyze metadata such as file titles, collaborators, and usage patterns. This enhances the user experience by offering contextual and predictive search capabilities.
Similarly, Microsoft Graph’s capabilities extend beyond search, connecting apps and services like Outlook, Teams, and Word to create a unified productivity ecosystem.
Microsoft faces stiff competition from Google and OpenAI. Google’s Gemini AI already offers advanced contextual search that integrates images and text, while OpenAI is set to release an autonomous AI agent capable of performing complex tasks such as booking appointments and writing code.
Microsoft’s focus on local processing distinguishes it from these competitors, particularly in terms of privacy, but its hardware limitations may hinder broader adoption.
Challenges and Opportunities
The AI file search feature represents a significant step forward for Microsoft, but its reliance on hardware with NPUs restricts accessibility. This limitation could slow adoption, particularly as competing solutions prioritize cloud-based functionality that works across a wider range of devices.
Future updates integrating OneDrive and other cloud services may address these concerns, offering hybrid models that balance privacy and accessibility. However, the transition to cloud-based processing raises questions about maintaining the same level of data security provided by on-device AI.