Microsoft exec: Copilot will hand tasks to local models when cost or privacy comes first

The routing logic is the real signal: Microsoft is conceding that cloud inference is not always the right default, which reframes on-device compute as a cost and compliance lever rather than a feature. That matters most for enterprises with data-residency or margin pressure, and for the local-inference toolchain that supports them. Whether this becomes a genuine tier or stays a narrow fallback is the open question, especially with a rival model also landing on Windows.