Microsoft PowerToys update to feature local AI and 300 changes

Microsoft is set to release a major update for PowerToys, featuring nearly 300 changes and improvements contributed by both the development team and the community.

A significant highlight is the integration of Phi Silica, Microsoft’s local AI model used in Copilot+ PCs, into the Advanced Paste tool. This allows text transformations to be processed directly on the device via the NPU, eliminating the need for external API keys or cloud connections for users with compatible hardware. Older machines will continue to rely on traditional API keys or Ollama.

Other notable updates include a compact mode for the Command Palette to save screen space and a new ripple effect for the mouse highlighter to provide a more subtle visual cue. The update also introduces a channel selector for easier switching between stable and Insider versions, and improvements to the keyboard shortcuts guide.