Microsoft is continuing its rapid development cycle for Windows 11, with the latest Canary channel build, version 27938, introducing a suite of significant new features for File Explorer. Notably, these updates bring advanced AI capabilities directly into file management, alongside the return of a highly requested visual enhancement for the notification center.

The most striking additions in build 27938 revolve around artificial intelligence, aiming to streamline workflows and enhance user interaction with files. Microsoft is integrating "AI actions" directly into the File Explorer context menu. By right-clicking on a file, users will now find a new "AI actions" option, offering quick access to powerful AI-driven tools without needing to open the associated application. This move signals a deeper commitment to embedding AI capabilities throughout the Windows ecosystem.

Initially, these AI actions are focused on image manipulation and search. Users can now leverage:

• Bing Visual Search: This feature allows for image-based web searches, making it easier to find similar products, gather information about an image's origin, or identify landmarks and famous faces. It's a smart way to move beyond text-based queries and interact with visual content more intuitively.
• Blur Background: Integrated with the Photos app, this tool can automatically detect and blur the background of an image, effectively highlighting the subject. Users can also fine-tune the blur intensity or use a brush tool for more precise control.
• Erase Objects: Also within the Photos app, this generative AI feature enables users to select and remove unwanted elements from their photos, cleaning up distractions and improving image quality with ease.
• Remove Background: This function, accessible via Paint, offers a one-click solution to automatically remove backgrounds from images, creating clean cutouts of subjects.

These AI-powered image actions are currently compatible with JPG, JPEG, and PNG file formats, suggesting a phased rollout and potential expansion to other file types in the future. The integration aims to keep users within their workflow, reducing the need to switch between multiple applications for common editing tasks.

The latest build isn't just about new features; it also includes a range of bug fixes and improvements across various system components.

• Settings Enhancements: A new section in Settings > Privacy & security > Text and image generation provides users with visibility into which third-party applications have recently accessed Windows' generative AI models. This offers greater control over the device's AI experience.
• System Stability and Performance: Fixes have been implemented for issues affecting the "Reset this PC" function, File Explorer's display in dark mode, and the rendering of video file thumbnails. Performance improvements for WMI Registry scanning are also noted.
• Input and Search: Several bugs related to sign-in options, search functionality getting stuck, and touch keyboard input with specific IMEs have been resolved.
• Task Manager and System Stability: Users experiencing Task Manager freezes or system bugchecks (green screens) should see improvements, with specific fixes for IRQL_NOT_LESS_OR_EQUAL and CRITICAL_PROCESS_DIED errors.

As with any Insider build, there are still known issues that Microsoft is actively working on. A significant one involves potential rollbacks during installation, indicated by specific error codes. Additionally, a bug causing temporary file scanning to get stuck in Settings is being addressed.

For developers, PIX on Windows is currently unable to play back GPU captures, with a fix expected in a late September release. Graphics drivers are also being investigated for screen flickering issues. A new audio problem affecting some Canary channel users, where audio stops working and devices show yellow exclamation marks in Device Manager, has been detailed with a workaround involving driver updates.

Microsoft's continued iteration on Windows 11, particularly with the integration of AI into core functionalities like File Explorer, signals a forward-looking approach to operating system development. The inclusion of user-requested features like the detailed clock display further demonstrates a commitment to refining the user experience based on community feedback. As these features mature in the Canary channel, they will eventually make their way to broader releases, shaping the future of Windows 11 for all users.