Local and optional. Most small and mid sized businesses won’t have concerns more than any locally cached session and Enterprise MS is well trusted with company data IMO. There will be plenty of on-premises folks who continue when this path but this isn’t as big as a concern as privacy folks are making it out to be. Copilot already has strong restrictions on what data is used for training for customers and what gets sent back to update Microsofts model (none of it).

It’s a locally proccesed model that doesn’t contribute to MS’s learning in any way. One of the more responsible approaches IMO.