Microsoft is enhancing its artificial intelligence capabilities in Windows 11 by potentially integrating its Copilot AI into File Explorer, as indicated by recent code discoveries in insider preview builds. This integration may introduce a new Copilot button or sidebar, allowing users to engage with AI for contextual queries about files, such as summarizing documents or organizing folders. Concerns have been raised regarding privacy and system performance, as the AI could access local files. The integration may also include chat capabilities, prompting fears of data exposure. Microsoft has assured users that Copilot prioritizes local processing and operates with consent. However, critics worry about the potential for intrusive AI suggestions and the possibility of forced updates. The integration is expected to leverage Microsoft's agentic AI framework and may require advanced hardware for optimal performance. Financial incentives, such as Copilot Pro subscriptions, are also a factor in this strategic push. User feedback will be crucial in determining the success of this integration, with mixed reactions from the tech community regarding privacy and control.