Windows 11 has introduced a fresh command-line terminal that integrates an AI agent, but rest assured, Microsoft has opted not to embed AI directly into the Windows Terminal. Instead, the tech giant has forked the open-source terminal project to unveil a new tool called “Intelligent Terminal.” This innovative tool was showcased at the recent Build 2026 developer conference and essentially retains the familiar Windows Terminal interface, now enhanced with a side panel for seamless interaction with the GitHub Copilot agent by default. This strategic move aims to sidestep potential backlash against AI integration.
Intelligent Terminal for Windows 11
The Intelligent Terminal is not included in the standard Windows 11 installation; users will need to download and install it manually. To access this command-line tool, simply launch the Windows Terminal as an administrator from the Start menu and execute the “winget install Microsoft.IntelligentTerminal” command.
Upon your first launch of the terminal, you’ll be prompted to select an Agent Client Protocol (ACP) compatible agent in the Agent pane. The Intelligent Terminal automatically identifies agents installed on your system, with GitHub Copilot set as the default option when available. During the initial setup, you can also activate features such as automatic error detection, session management, and pane positioning within the terminal. Notably, enabling error detection installs shell integration, allowing the Intelligent Terminal to monitor command failures, while session management installs hooks to track agent activity across terminal sessions.
The AI integration offers two primary experiences: agent chat and agent management. The agent chat pane can be accessed via a toggle at the bottom-left (if positioned there) or by using the keyboard shortcut “Ctrl + Shift + .”. Alternatively, you can hide it with “Ctrl + Shift + I.” In this pane, an error detection icon will illuminate whenever a fixable error is detected, and users can manually inquire about errors or other needs through the chat interface. If the agent is tasked with multiple or complex operations, it will automatically run background tasks, allowing users to maintain focus without needing to switch to another application for assistance.
While GitHub Copilot is the default agent, users have the flexibility to utilize Claude Code, Google Gemini, and OpenAI Codex. Additionally, since the terminal adheres to the open ACP standard, users are not restricted to cloud-based AI agents; however, local installation of the agent CLI is required for the Intelligent Terminal to recognize it.
Agent Management Pane
Located at the bottom-right (assuming a bottom position), the agent management icon opens the session management pane, which can also be accessed via the “Ctrl + Shift + /” keyboard shortcut. This pane enables the Intelligent Terminal to track both active and past agent sessions, allowing users to revisit specific activities at any time. Essentially, it serves as a centralized hub for monitoring all agent activity, where users can view running AI agents, check task details, oversee long-running tasks, resume previous sessions, and dismiss completed tasks. This functionality proves invaluable for users juggling multiple tabs, such as one creating a Python script and another running tests, as it eliminates the need to remember which tab corresponds to which task.
Command Palette with AI
The Intelligent Terminal also enhances the Command Palette with AI actions. By employing the “Alt + Shift + /” keyboard shortcut followed by a specific request, users can relay the current terminal context to an agent and initiate a task without interrupting their workflow. The agent operates in the background while users continue their work in the active terminal session.
Intelligent Terminal Settings
When accessing the settings for this AI-integrated Windows Terminal, users can customize both terminal and agent settings. Control over AI agents is granted based on those previously installed on the computer. Users can also adjust the pane position and configure automatic error detection and suggestions. It is crucial to remember to click the “Save” button after making any changes, as the adjustments do not apply automatically.
Windows Central’s Take
Microsoft’s decision to keep AI separate from the Windows Terminal and create a distinct experience appears to be a prudent one. Over the past few years, the company has integrated AI into various applications, but not all implementations have resonated positively with users. Developers, in particular, tend to be protective of their tools, and forcing AI into an established terminal experience could have led to unnecessary friction. The Intelligent Terminal, however, holds significant promise. It aims to streamline the process of looking up command syntax, troubleshooting errors, and understanding failures, minimizing the need to switch between the terminal and other resources. If successful, it could become a genuinely valuable productivity tool.
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