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Microsoft's Gaming Copilot AI not only raises privacy concerns but also impacts performance

Xbox Gaming Copilot Xbox banner is shown (Image source: Xbox Wire with edits)
Xbox Gaming Copilot Xbox banner is shown (Image source: Xbox Wire with edits)
Not all gamers are welcoming the new Gaming Copilot AI features with open arms. It aims to boost skills, but relies on scanning recorded screenshots for training. Some Windows 11 users think the app is sending data to Microsoft without their consent while simultaneously degrading performance.

Since Microsoft rolled out its new Gaming Copilot, gamers have noticed suspicious background activity. The worry is that to train AI features, screenshots are being scanned with OCR, with the resulting data sent back to Microsoft. However, as a TechRadar article discusses, the updates to Xbox Game Bar may also affect gaming performance.

The controversy started when a ResetEra forum poster shared images of Windows 11 network activity. It appears that information is being recorded and uploaded to Microsoft’s servers. While this raises obvious privacy concerns, the implications could have been worse in this scenario. The individual was testing a game under NDA, which can put a relationship with a publisher at risk.

Gaming Copilot privacy concerns (Image source: screenshot, RedbullCola@ResetEra forums)
Gaming Copilot privacy concerns (Image source: screenshot, RedbullCola@ResetEra forums)

There is now some debate over what data the PC was actually sending. Regardless, many players object to their gameplay experiences being recorded without consent. Even worse, the “Model training on text” option is enabled by default without any warning. Windows 11 users can disable the feature in the Gaming Copilot privacy settings.

The other drawbacks of Gaming Copilot

Some gamers already avoid the Xbox Game Bar like the plague. The Xbox app or Game Bar can fail to update properly, causing an endless installation loop. Frame rates may suffer as the software consumes more resources to record clips on demand. Performance drops may be even more significant with Gaming Copilot AI features active.

Isaiah Williams of TechRadar saw a modest, but measurable drop in performance. In Dead as Disco, he observed that average frame rates fell from 84 to 89 to 80 to 85 with AI monitoring enabled. Williams notes that Microsoft Edge must run in the background for Copilot to function, which further taxes CPUs and memory. On lower-end PCs or handhelds like the ROG Xbox Ally, these added burdens become more significant.

AI assistants are rapidly becoming integrated into gaming apps. Laptop and accessory manufacturer Razer plans to launch a beta for its Game Co-AI. The goal is to provide real-time and post-match assistance to players. Yet, without user-supplied training data sent to companies, these tools aren’t effective. The difference is that Microsoft integrates Gaming Copilot AI into the Game Bar, rather than having gamers install it through third-party software.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2025 10 > Microsoft's Gaming Copilot AI not only raises privacy concerns but also impacts performance
Adam Corsetti, 2025-10-23 (Update: 2025-10-23)