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07:56 AM UTC · THURSDAY, MAY 14, 2026 XIANDAI · Xiandai
May 14, 2026 · Updated 07:56 AM UTC
AI

Microsoft testing local AI agents to compete with OpenClaw

Microsoft is developing new features for Microsoft 365 Copilot that mimic the local functionality of the OpenClaw agent with enhanced enterprise security.

Alex Chen

2 min read

Microsoft testing local AI agents to compete with OpenClaw
Photo: m365.cloud.microsoft

Microsoft is testing new ways to integrate features similar to the OpenClaw agent into its Microsoft 365 Copilot tool, according to reports from The Information.

The company's new development aims to target enterprise customers by offering better security controls than the open-source OpenClaw agent, which has gained notoriety for its security risks.

OpenClaw operates locally on a user's computer to create agents that perform tasks on their behalf. If Microsoft successfully launches a local version of this technology, it would expand its existing suite of agentic tools.

Expanding the Copilot ecosystem

Microsoft recently announced several other agentic products, though most currently rely on cloud computing rather than local hardware. In March, the company launched Copilot Cowork, which uses 'Work IQ' technology to personalize actions across Microsoft 365 apps.

Microsoft has also integrated Anthropic’s Claude into the Cowork ecosystem following a partnership late last year. While OpenClaw supports multiple models, Claude remains a primary choice for many users of the open-source project.

Earlier this year, Microsoft introduced Copilot Tasks in a preview release. This agent is designed to handle a range of duties, from organizing emails to managing travel and appointments.

Unlike the potential new 'Claw-like' features, Copilot Tasks operates in the cloud. It appears aimed at prosumers, managing tasks both within and outside the Microsoft Office suite.

Microsoft has not yet confirmed if its new project will run on local hardware or if it will simply adopt the specific workflow features favored by OpenClaw users.

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