

Likely in pretty much every case they are taking files that you perform an AI function on and uploading them to their cloud.
I said the few exceptions might be very low effort work that could run on the new NPU chips coming with some PCs. But I doubt they would even do that because it’s passing up the opportunity to use consumer data to train their models.
So yes, if you use an AI feature, MS is taking your file(s) and training it’s models on it
A hand wave? I’ve been a New Englander all my life. You get a quick glance and half grimace smile if you’re lucky. And that’s pretty much only if we accidentally make eye contact