Microsoft (NASDAQ:MSFT) Delays the Roll-Out of “Recall” AI Feature

Microsoft (NASDAQ:MSFT) stated on Thursday that it will not roll out its AI-powered feature, “Recall” in its new computers next week. Instead, the tech giant plans to preview it with a small group later due to concerns about privacy risks.

What is MSFT’s “Recall” Feature?

Microsoft’s “Recall” feature tracks web browsing and voice chats, storing a searchable history on the computer for future reference. The company added that Recall will now be available for preview only on the Windows Insider Program (WIP) in the coming weeks, instead of broadly being available for Copilot+ PC users. Microsoft’s Copilot+ PCs are the company’s new category of personal computers with artificial intelligence (AI) features that were unveiled earlier this year.

MSFT’s WIP is a public software testing program that lets millions of users preview upcoming Windows features. Microsoft plans to make the Recall preview available to all Copilot+ PCs after feedback from the WIP community.

Why was the “Recall” Feature Controversial?

Many users had flagged the Recall feature as controversial after it was unveiled saying it was an invasion of privacy and could be used for spying. Meanwhile, even security experts have warned that this feature could be a cybersecurity “disaster” without changes.

As a result, Microsoft has committed to three major updates regarding the feature. This includes making the Recall feature an opt-in for users instead of being a default feature, encrypting the database, and authenticating through Windows Hello.

Is Microsoft a Buy, Sell, or Hold?

Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on 33 Buys and one Hold. Over the past year, MSFT has increased by more than 30%, and the average MSFT price target of $496.56 implies an upside potential of 12.5% from current levels.