Microsoft has updated Notepad to include the Copilot feature for text generation, requiring users to sign in with their Microsoft account to access the Write feature. Users can generate text by selecting the Write option from the Copilot menu, which can then be reviewed, saved, or refined. Microsoft has also introduced AI-driven features in Paint, including a sticker generator and a smart selection tool. These updates reflect Microsoft's efforts to innovate its built-in Windows applications, although some users question the necessity of AI in simpler tools like Notepad.