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Microsoft is putting AI actions into the Windows File Explorer
(www.theverge.com)
This is a most excellent place for technology news and articles.
You said "mostly" and also, I don't want microsoft looking at any of my images without them asking first. They already have deleted images from my computer if I save them in their designated "my pictures" folder. I don't trust them.
I don't see it mention it doing anything by itself? This is just an overblown aditional context menu action from inbuilt Windows apps, nothing special. Same thing as "Open Folder in VS Code".