Yes, you can have both. A Windows AI PC lets you keep privacy and productivity in balance if you adjust a few settings: keep diagnostics to required data only, review app permissions, use on-device speech recognition and limit activity history syncing. Meanwhile, the neural processing unit (NPU) handles many AI tasks locally, so cloud features stay optional.
Quick answer: can you have both privacy and AI productivity?
Key privacy settings to adjust:
- Set diagnostics to "Required" only (not optional)
- Review app permissions regularly
- Enable on-device speech recognition and turn off online speech services
- Limit activity history syncing across devices
Productivity optimisations:
- Customise Microsoft Copilot™ for task assistance
- Use local AI processing when possible
- Index only the folders you need for smart search
- Enable hardware acceleration for AI tasks
Bottom line: On-device AI processing on your PC's NPU handles many sensitive tasks locally, while optional cloud features remain under your control.
Windows AI PCs have changed what a personal computer can do. Instead of being an add-on or accessibility feature, AI is now built into the operating system and the hardware. Microsoft® Windows® 11 uses the NPU alongside the central processing unit (CPU) and graphics processing unit (GPU) to handle AI processing as part of everyday computing.
Many people find that tasks such as summarising files, getting content overviews and locating documents now take seconds. Because on-device AI processes information locally rather than sending it to the cloud, Windows AI PCs can suit people whose work calls for tighter data handling.
Whether you work from a home office, a co-working space or a café, this guide shows how we set up a Windows AI PC to improve productivity and efficiency without sharing more personal data than necessary.
Understanding Windows AI PC Privacy and Data Usage
Before we adjust any settings, it helps to understand how these machines work. AI features rely on different types of input, such as audio, visual and text, so it is natural to wonder how much data is collected. On-device AI processing is designed to work with files already on your PC. It reads the content, runs the task on the NPU and returns the result in real time, rather than sending your content to the cloud.
Diagnostics and feedback
Windows AI laptops such as the HP OmniBook Ultra share diagnostic reports and feedback with Microsoft. This data helps improve reliability and performance, and you can limit how much is shared.
What diagnostic data includes:
- System performance metrics
- Feature usage patterns
- Error reports and crash data
- Hardware compatibility information
AI processing model design
Most Windows AI PCs use a hybrid processing model. On-device AI handles real-time tasks that need privacy and speed, while complex requests may use cloud processing.
| Processing type | Examples |
|---|---|
| On-device (NPU) | Speech recognition, background blur in video calls, real-time translation, local file analysis |
| Cloud (optional) | Complex image generation, advanced content creation, web-connected queries |
This approach helps separate the data that features need in order to work from optional telemetry.
Data protection at work in Singapore
If you use your AI PC for work, remember that Singapore's Personal Data Protection Act (PDPA) governs how organisations collect, use and disclose personal data. Your organisation's data protection policies apply alongside the settings in this guide, so check with your IT or data protection team before enabling features that touch client or customer information.
Essential Privacy Settings to Configure
Windows includes privacy controls that are easy to find and can be customised to suit how you work. Menu names and locations can differ slightly between Windows 11 versions, so use the Settings search bar if a path looks different on your device.
1. Telemetry and diagnostics
Every operating system collects some data for diagnostics and improvement. This setting on a Windows AI PC controls how much data Windows collects and separates required data from optional data.
Path: Settings → Privacy & Security → Diagnostics & Feedback
Recommendation: Leave required diagnostics enabled and turn off optional data unless you are troubleshooting a problem. This keeps your PC reliable without unnecessary sharing.
What this controls:
- System performance data sent to Microsoft
- Feature usage statistics
- Error reporting frequency
- Improvement programme participation
2. App permissions
Some apps that use AI features may ask for access to hardware such as the microphone, camera, location or files. You decide which apps get access, and when.
Path: Settings → Privacy & Security → App Permissions
Recommendation: Only grant access to apps with a justified need. For example, a speech-improvement app may need the microphone, but the same app has no reason to request your contacts or other unrelated data.
Permissions to review:
- Camera (video calls, scanning)
- Microphone (voice commands, transcription)
- Location (maps, weather)
- Files and folders (document processing)
- Notifications
3. Copilot data controls
Microsoft Copilot is an AI assistant that many people use to boost their productivity. It does not need extensive access to all your information.
Path: Settings → Privacy & Security → Copilot
Recommendation: Allow basic system context while avoiding long-term content history. Think of Copilot as a helper, not a logbook.
Best practices:
- Enable task-focused assistance
- Disable conversation history if you work with sensitive data
- Limit access to personal files unless necessary
- Review data retention settings
4. Activity history
Activity history helps you pick up where you left off across devices. It falls under optional data collection and can be turned off.
Path: Settings → Privacy & Security → Activity History
Recommendation: Keep local history enabled for convenience and disable cloud syncing if you do not need cross-device tracking.
What this affects:
- Timeline feature in Task View
- Cross-device app continuity
- Microsoft account activity tracking
- Personalised recommendations
5. Speech recognition
Voice features are among the clearest examples of AI running locally on your NPU.
Path: Settings → Privacy & Security → Speech
Recommendation: Enable on-device speech recognition and disable online speech services if privacy is a priority.
Key distinction:
- On-device: Processes voice commands locally on your PC's NPU
- Online: Sends audio to Microsoft servers for processing (more accurate but less private)
Optimising AI Features for Productivity
Once your privacy settings match your needs, it becomes easier to trust AI-powered apps on your PC.
Copilot for everyday tasks
Copilot improves productivity and accessibility by shortening the gap between a question and an answer. When configured well, it provides AI summaries of text, document suggestions and overview assistance. On Copilot+ PCs, it can also replace searching through menus and documentation.
Best practices:
- Customise Copilot to focus on task help rather than personal content
- Avoid filling Copilot chats with personal or sensitive information
- Use Copilot for system commands and general assistance
- Review data sharing settings regularly
Example uses:
- "Switch to dark mode"
- "Show me keyboard shortcuts for [application]"
- "Summarise this document" (when appropriate)
- "Find files modified in the last week"
AI-powered suggestions and recommendations
AI-powered suggestions scan your files and help streamline organisational and routine tasks. For best results:
Configuration tips:
- Turn off suggestions tied to browsing or external content if they feel intrusive
- Keep system-level recommendations that help with settings or navigation
- Disable personalised ads and content recommendations
Where suggestions appear:
- Start menu recommendations
- Search suggestions
- File Explorer quick access
- Taskbar suggestions
Automation features
AI automation handles repetitive processing so you can focus on the task at hand. To get the most from it:
Setup recommendations:
- Set up shortcuts for repetitive actions on your PC
- Choose local automations whenever possible to reduce data exposure
- Use Microsoft Power Automate for advanced workflow automation
- Configure AI-powered clipboard history for frequent copy-paste tasks
Common automations:
- Auto-organise the downloads folder
- Scheduled file backups
- Automated email sorting and responses
- Smart photo organisation
Smart search and indexing
Smart search helps you find files without needing exact keywords, saving you time and effort. To get the most from it:
Optimisation steps:
- Index only the folders you use regularly
- Exclude large or sensitive directories - this improves both privacy and speed
- Use natural language queries ("photos from last summer")
- Disable web search results if you only need local files
Indexing best practices:
- Include: Documents, Desktop, Pictures (work-related folders)
- Exclude: System folders, temporary files, archived projects
Performance Tuning for AI Workloads
After configuring your privacy settings, fine-tune performance for heavier AI use. AI features are designed to run efficiently on modern systems, but a few adjustments help them run smoothly. For intensive work such as AI model training, an AI workstation is a better fit than a standard laptop.
Memory and background apps
Close unnecessary background applications:
- Background apps can consume memory and CPU resources
- Review startup programmes: Settings → Apps → Startup
- Disable apps that do not need to launch at startup
- Use Task Manager to monitor resource usage
Storage optimisation
Enable AI model caching:
- Allow AI model caching on fast local storage so features do not repeatedly reload data
- Keep around 20% of your primary drive free
- Use SSD storage for the best AI performance
- Consider storing large media files on secondary drives
Hardware acceleration
Verify hardware acceleration is enabled:
- Ensure the NPU and GPU handle AI tasks efficiently
- Path: Settings → System → Display → Graphics settings
- Enable "Hardware-accelerated GPU scheduling"
- Check that AI features are using the NPU, not just the CPU
To verify NPU usage:
- Open Task Manager → Performance tab
- Look for NPU utilisation during AI tasks
- Ensure NPU drivers are up to date
Power settings
Optimise your power plan for AI:
- Use the "Balanced" or "High Performance" power plan when using AI features
- Go to Settings → System → Power & battery
- Adjust sleep settings to prevent interruption during AI processing
- Consider "Best Performance" mode for intensive AI tasks
Security and Compliance Best Practices
Windows also includes built-in protection features that support AI without adding complexity. For a closer look at how Copilot fits into Windows 11 protection, read our guide on Microsoft Copilot and Windows 11 security.
Windows Security and AI protection
Windows Security, which includes Microsoft Defender Antivirus, helps detect threats on your PC in real time. We suggest leaving it enabled to help protect the data your AI features process against external threats.
Key features:
- Real-time malware detection
- Behavioural analysis of applications
- Cloud-delivered protection (optional but recommended)
- Automatic sample submission for threat analysis
Firewall configuration: If you use Windows Firewall, you can:
- Choose which features connect externally
- Keep track of which applications are using AI-powered tools
- Block unnecessary outbound connections
- Review app network access regularly
Data encryption
Enable BitLocker or device encryption:
- Helps protect data at rest on your storage drive
- Especially useful for laptops and portable devices
- Go to Settings → Privacy & Security → Device encryption
- Back up your recovery key securely
Regular security maintenance
Monthly security checklist:
- Update Windows and drivers
- Review app permissions
- Check firewall rules
- Scan for malware with Windows Security
- Review privacy settings after major updates
Daily Usage Best Practices and Quick Optimisation Checklist
Use this checklist as your go-to routine for an optimised PC setup that protects the data your AI features process. It is not a one-time job. Revisit it as your AI use and security needs change.
Quick setup checklist
Privacy basics:
- Set diagnostics to "Required" only
- Review app permissions monthly
- Enable on-device speech recognition
- Limit activity history syncing across devices
- Disable optional telemetry
Productivity essentials:
- Customise Copilot for your workflow
- Optimise search indexing (include only necessary folders)
- Prioritise local AI processing when possible
- Set up automation for repetitive tasks
- Configure smart suggestions appropriately
Security upkeep:
- Enable Windows Security real-time protection
- Configure firewall rules
- Enable storage encryption (BitLocker or device encryption)
- Keep Windows and drivers updated
- Review security settings quarterly
Performance optimisation:
- Disable unnecessary startup programmes
- Enable hardware acceleration
- Keep around 20% of storage free
- Use the "Balanced" or "High Performance" power plan
- Monitor NPU usage in Task Manager
Common Questions About Windows AI PC Configuration
How can I tell if my Windows AI PC privacy settings are working?
You can check which apps have access to your hardware and which apps use AI processing in the Privacy & Security section of Windows Settings. Reviewing these categories regularly makes it easy to confirm that your privacy settings are doing their job.
Verification steps:
- Go to Settings → Privacy & Security
- Check each category (Camera, Microphone, Location, etc.)
- Review which apps have access
- Look for "Last accessed" timestamps to see recent usage
- Use Task Manager to monitor network activity by app
You can also review the Privacy Dashboard on your Microsoft account online to see what data Microsoft has collected.
Will limiting data collection reduce Windows AI PC performance?
In most cases, limiting data collection has little effect on how a Windows AI PC performs. Core AI features run on the local NPU and do not need extensive data sharing, so on-device AI features should keep working with strict privacy settings.
What you should keep:
- On-device speech recognition
- Local file search and indexing
- Real-time video effects (background blur)
- Offline AI features
What may be affected:
- Personalised recommendations (improved with more data)
- Cloud-based image generation (requires internet)
- Some Copilot features that rely on usage patterns
- Cross-device activity sync
Do I need to keep updating Windows AI PC privacy settings?
Yes, but not constantly. Review your Windows privacy settings at these points:
- After major Windows updates (can reset some preferences)
- When installing new AI-powered apps (may request new permissions)
- Quarterly (good general practice)
- When your workflow changes (new job, projects requiring different security levels)
Major Windows updates sometimes introduce new AI features with their own privacy settings, so it is worth checking after each update.
Can I use Windows AI PC features without a Microsoft account?
Many core Windows AI PC features work without signing in to a Microsoft account, but some require authentication.
Works without an account:
- Basic Copilot queries
- On-device speech recognition
- Local file search
- Background effects in video calls
Requires a Microsoft account:
- Copilot conversation history sync
- Cross-device activity tracking
- Microsoft 365 AI features
- Cloud-based content generation
What is the difference between required and optional diagnostics in Windows?
Required diagnostics use minimal data and focus on system health, while optional diagnostics give Microsoft more detailed usage information for product improvement.
Required diagnostics:
- Essential system information for Windows to function
- Basic device and hardware information
- Critical error reports
- Security and update data
- Can be minimised but not fully disabled
Optional diagnostics:
- Detailed usage patterns
- Enhanced error reports
- Feature usage statistics
- Inking and typing data
- Can be turned off without affecting core Windows functionality
Is it safe to use a Windows AI PC on public Wi-Fi in a café or co-working space?
A Windows AI PC on public Wi-Fi faces the same network risks as any other PC. On-device AI processing keeps many tasks off the network, but AI features that rely on cloud services still send data over the connection. We recommend keeping Windows Firewall enabled, avoiding sensitive work on open networks and using a trusted VPN when connecting to company resources.
HP Windows AI PC Recommendations
HP offers several Windows AI PCs suited to both productivity and privacy:
- HP OmniBook Ultra: Features a dedicated NPU to run many AI tasks locally, for privacy-focused AI performance without relying on the cloud for every task
- HP EliteBook series: Business-grade security features combined with AI capabilities, suited to professionals who need both productivity and data protection
- HP OmniBook X: Consumer-focused AI features with strong privacy controls, offering a good balance for home and creative users
HP's Windows AI PCs are built around a dedicated NPU for on-device AI processing and run Windows 11 with built-in privacy controls. Security features vary by model, so check the specifications of the model you are considering.
To explore how AI PCs fit into modern workflows, browse HP's OmniBook range and the practical AI capabilities built into today's systems.
Conclusion
AI processing may feel like it could affect your privacy, but Windows AI PCs do not ask you to choose between better productivity and information security. What matters is knowing how to adjust your settings to protect your data while keeping your PC running well.
As you adopt more AI-powered apps and tools, revisit your privacy settings to catch any changes. A good rule of thumb is to allow core permissions while adjusting optional data collection to suit your needs.
Key takeaways:
- On-device AI processing on the NPU supports privacy-focused computing
- Most productivity features work with minimal data sharing
- Regular privacy setting reviews help keep you protected
- Performance and privacy can coexist with the right configuration
Start with the quick checklist above, then fine-tune your settings based on your workflow and security requirements.
