Copying and pasting on Windows is evolving from a simple clipboard operation into a full-fledged AI workflow. With PowerToys 0.96, Microsoft’s Advanced Paste now lets users run AI models directly on their PC using the neural processing unit (NPU), or optionally offload tasks to a variety of cloud providers—giving you unprecedented control over how clipboard content is processed.

What Advanced Paste Actually Does

Advanced Paste is a clipboard management tool in Microsoft PowerToys for Windows 10 and 11. Triggered by the default shortcut Win + Shift + V, it allows you to transform clipboard content before pasting it into any application. Even without AI, it already provides powerful features:

CapabilityWhat It DoesRuns Locally?
Paste as Plain TextStrips formatting and pastes unformatted textYes, no AI
Paste as MarkdownConverts HTML-style formatting to Markdown syntaxYes, no AI
Paste as JSONConverts structured text like XML into JSONYes, no AI
Paste as .txt / .html / .png fileSaves clipboard content as a file and pastes it into file-aware appsYes, no AI
Image to TextPerforms OCR on clipboard images and pastes extracted textYes, local OCR
Transcode to .mp3 / .mp4Converts audio or video from clipboard to .mp3 or .mp4Yes, uses Windows Media APIs

The “Paste with AI” feature adds a language model on top of these tools, enabling text summarization, translation, reformatting, or rewriting based on user prompts. PowerToys 0.96 introduces a hybrid AI system, giving you the choice between local and cloud AI models.

On-Device AI: Run Models Directly on Your PC

The standout update in PowerToys 0.96 is that Advanced Paste can now run AI entirely on your local machine, without sending data to external servers. Two local providers make this possible:

Local ProviderRoleRequirements
Foundry LocalRuns AI models using Microsoft’s local inference stack, leveraging NPUs when availableInstall and configure Foundry Local on Windows
OllamaProvides access to open-source local models like Llama and Mistral variantsInstall and configure Ollama on Windows

With local AI:

  • No API key is needed
  • No per-token fees
  • No internet connection required for AI processing

Tasks like summarizing documents, translating text, or rewriting emails can run entirely on your NPU, CPU, or GPU—keeping sensitive clipboard content fully offline.

Hybrid AI: Combine Local and Cloud Models

Previously, Advanced Paste only supported OpenAI’s cloud models. Now, it supports a hybrid AI workflow that can mix multiple local and online providers:

ProviderTypeTypical Use
OpenAIOnlineGeneral text and code generation, Semantic Kernel workflows
Azure OpenAIOnlineEnterprise use with regional compliance
MistralOnlineFast, compact models for text and coding
Google (Gemini)OnlineTranslation and reasoning tasks
Azure AI InferenceOnlineAccess to additional models on Azure
Foundry LocalLocalOffline or sensitive workloads on managed PCs
OllamaLocalOpen-source local models, no vendor lock-in

In PowerToys Settings, users can add one or more providers and configure API keys for cloud services or runtime paths for local models. The model dropdown in Advanced Paste then lets you:

  • Route tasks to cloud models for speed
  • Keep confidential content local
  • Switch providers without leaving the clipboard interface

For businesses, this transforms a simple clipboard utility into a hybrid AI gateway, balancing cost, speed, and data privacy.

Cost and Privacy Benefits

Cloud AI pricing is based on usage—high-volume repetitive tasks can quickly become expensive. Local AI changes that:

  • Hardware is a one-time cost, with minimal incremental expense
  • AI tasks like translation, summaries, or formatting run at near-zero marginal cost
  • Clipboard data never leaves your device, simplifying compliance and privacy

This makes Advanced Paste an ideal tool for everyday AI operations while reserving cloud APIs for tasks requiring larger models.

Improved Advanced Paste Interface

PowerToys 0.96 introduces a refreshed UI for better control:

UI ElementFunction
Clipboard PreviewDisplays current clipboard content before pasting
Model DropdownChoose between local and cloud AI models
Action ListQuick access to paste as plain text, Markdown, AI, media transcoding, etc.
Progress Ring & CancelShows status of long-running actions with the option to cancel

Settings allow you to:

  • Toggle Paste with AI
  • Enable clipboard history
  • Preview custom formats
  • Save AI prompts as named actions and assign shortcuts

Note: Overriding Ctrl + V is possible but not recommended due to app inconsistencies.

Configuring AI Providers

Adding AI models in Advanced Paste is simple:

  1. Open Advanced Paste Settings in PowerToys
  2. Enable Paste with AI
  3. Add a model provider (OpenAI, Azure OpenAI, Mistral, Google, Azure AI, Foundry Local, Ollama)
  4. Fill provider details (API key/endpoint for cloud, model path/runtime for local)
  5. Save and select the model in the dropdown

OpenAI models can integrate with Semantic Kernel flows, allowing multi-step operations like “convert image to text → translate → save as .txt.”

Practical Use Cases

Advanced Paste simplifies everyday workflows:

  • Summarize long text: Copy an email thread and quickly generate a brief summary
  • Translate text: Instantly translate text between languages with local or cloud models
  • Adjust style: Rewrite a draft into a formal email or simplified version
  • Code generation: Convert natural language instructions into executable code snippets

After 0.96, each action can run fully local or on a cloud provider, all from a single clipboard interface.

Where Advanced Paste Fits in Windows AI

Windows 11 is evolving into an “agentic OS”, with AI helpers integrated into the system. Advanced Paste starts small—at the clipboard level—but demonstrates how hybrid AI can be safely and efficiently applied in productivity workflows. In the future, similar patterns could appear in Word, Excel, Outlook, Teams, or even the Windows taskbar.

For now, copy-paste is no longer just a mundane operation. It’s a configurable AI switchboard, capable of operating entirely offline or selectively leveraging cloud models, depending on your needs.

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