Microsoft Unveils “Context-Aware” AI Features for Windows 11, No Mention of Windows 12

The Evolution of Windows: Embracing AI and Context Awareness

According to Microsoft’s Windows chief, the trajectory of Windows is increasingly aligned with artificial intelligence and context-awareness. As technology progresses, Windows 11 is expected to revolutionize user interactions, allowing the system to perceive the user’s screen much like the user perceives it themselves. At present, Microsoft is not focusing on a potential Windows 12; rather, enhancements to Windows 11 will continue to integrate advanced multimodal capabilities, including voice, visual recognition, and screen engagement.

Pavan Davuluri, who spearheads Microsoft’s Windows and Devices division, elaborated on these transitions during a recent YouTube podcast. He emphasizes a shift from traditional click-based interactions to intent-driven functionality—where Windows intuitively understands the user’s needs.

As a practical example, the redesigned Settings app is rolling out with AI-enhanced features on Copilot+ PCs as part of the Windows 11 August 2025 Update. This new agentic interface includes a smart search bar that can infer what changes the user aims to make, even when the query lacks clarity. The technology showcases the operating system’s improved understanding of user intent.

The intelligence behind this feature stems from a new AI model named ‘Mu’, which operates directly on your device. Mu is just one example of the forthcoming localized AI models, marking the inception of advanced AI functionalities within Windows.

Pavan Davuluri remarked, “We now have these AI models that can run on-device.” The introduction of models like Phi, also being integrated into Edge, signifies a promising future where significant AI capabilities can be harnessed directly from user devices. While the Copilot+ PC relies on an NPU (Neural Processing Unit), users might still be able to access Phi-enhanced features utilizing a GPU.

Phi-mini API in Microsoft Edge | Image Courtesy: WindowsLatest.com

According to Davuluri, “The Phi models often power many features we encounter in Click to Do, as well as capabilities in Recall.” At a recent Qualcomm event, a prototype demonstrated the capability of a built-in NPU chip to generate images—representing the vision Microsoft seeks to realize.

Windows 11: A Shift from Traditional Input Methods

Microsoft is evolving its perception of user interface, recognizing that interaction with Windows extends beyond the traditional mouse and keyboard. Instead, the future directions place considerable emphasis on vision—enabling Windows to replicate how users visually engage with their screens.

“The operating system is increasingly multimodal, encompassing voice, vision, pen, and touch capabilities alongside traditional mouse and keyboard interactions, ” noted Davuluri. This context-aware Windows will focus on optimizing various modalities; future iterations will enable collaboration between voice, touch, pen, and vision. For example, while reading a PDF, Windows could assist in summarizing or editing the document based on user intent.

Davuluri elaborated, “The concept of your computer being able to recognize and interpret your screen will be a significant modality going forward.” Microsoft aims to ensure Windows 11 remains relevant in the AI-centric landscape.

AI Features Reserved for Copilot+ PCs

Current indications suggest that Microsoft plans to limit these advanced AI capabilities to new Copilot+ PCs, foregoing similar features for conventional PCs lacking an NPU. Even high-performance computers with substantial graphics capabilities will be unable to utilize AI aspects. The company’s strategy appears directed towards incentivizing the acquisition of Copilot+ machines.

“Our primary aim is to ensure that as we evolve Copilot+ PCs with innovative capabilities, we can leverage the Copilot within Windows and the M365 Copilot to offer our customers differentiated value, ” stated Davuluri. Furthermore, it is worth noting the potential confusion regarding product names, as Microsoft continues to navigate the branding landscape of Copilot and Microsoft 365 Copilot.

While Copilot in Windows is designed to integrate OS-level capabilities and manage device tasks and screen contexts, Microsoft 365 Copilot serves as a digital companion for productivity tools, such as document editing, mail, and project management.

What Lies Ahead: Windows 12 on the Horizon?

For now, Microsoft is refraining from discussing Windows 12, a logical stance considering the obstacles it currently faces in transitioning Windows 10 users to Windows 11 prior to its extended end-of-life on October 13, 2026. The emphasis remains on promoting a vision where AI integration blurs the lines between local computation and cloud capabilities, signifying the future direction of Windows.

File Explorer dark mode dialogs — Image Courtesy: WindowsLatest.com

Microsoft plans to prioritize AI enhancements in Windows above other features, with few exceptions such as the long-awaited dark mode for File Explorer dialogs. How do you view these developments?

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