Microsoft Edge AI Can Now Analyze Local Files

Microsoft is enhancing its Edge for Business browser with new AI capabilities. An upcoming feature will allow the integrated Microsoft 365 Copilot Chat to analyze the content of open browser tabs, local Office documents, and even YouTube videos. This development points toward more deeply integrated, context-aware AI assistance within daily productivity workflows.

- The local file analysis capability relies on Copilot in Windows, which uses the Windows Indexing service to search for and parse files, meaning it doesn't send the data to Microsoft's servers for processing. This feature is optional and must be enabled by the user in Copilot's settings due to privacy considerations. - For enterprise users, Microsoft 365 Copilot Chat in Edge provides commercial data protection, ensuring that prompts, responses, and file content stay within the organization's Microsoft 365 tenant and are not used to train foundational AI models. IT administrators can manage access and permissions for these AI features through the Edge management service. - The feature extends beyond static documents; it can also analyze content across up to 30 open browser tabs simultaneously, allowing for nuanced, context-rich answers and comparisons without switching tabs. This multi-tab reasoning respects existing data protection policies, skipping over protected pages. - This functionality is part of a broader "Copilot Mode" in Edge for Business, which aims to transform the browser into a proactive assistant that can execute multi-step workflows on IT-approved websites. - While Copilot in Edge can analyze local files like PDFs and documents, the full suite of analytical features for Excel files works best when the files are stored in OneDrive or SharePoint and formatted as tables. - To prevent data exfiltration, Edge for Business includes security features like screenshot prevention, which shows a black screen instead of protected content, and "Protected Clipboard," which leverages Purview DLP policies to control where data can be pasted. - The file analysis is initiated by either clicking a paperclip icon to upload a file or dragging and dropping it into the Copilot chat box. Once uploaded, the file's content is treated as if it were copied and pasted directly into the chat. - Starting in August 2025 with Edge version 139, administrators will have a new policy, `Microsoft365CopilotChatIconEnabled`, to control the visibility of the Copilot Chat button in the toolbar.

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