Microsoft unveils Intelligent Terminal for Windows 11, turning the command line into an AI assistant

• Microsoft introduced Intelligent Terminal as an experimental Windows 11 app that adds AI agents directly into terminal workflows.
• It installs separately from Windows Terminal and works alongside it instead of replacing it.
• The tool introduces an agent pane, status bar, and command palette integration for context-aware AI assistance.
• It automatically detects command failures and sends error output to AI agents for explanations and suggested fixes.

Microsoft has introduced Intelligent Terminal, a new experimental app for Windows 11 that brings AI agents directly into the command-line experience. The company announced the project during Build 2026 as part of its broader push to make Windows a more capable platform for developers.

The app is available now as a separate download from the Microsoft Store and through the Windows Package Manager (winget). It works alongside Windows Terminal rather than replacing it.

Reason for Intelligent Terminal

The command line has always been efficient but fragmented. When something breaks, developers switch to browsers, forums, and documentation to interpret errors. Intelligent Terminal aims to remove that break in workflow by embedding an agent that understands terminal context, command output, and failures in real time.

The key idea is not just AI assistance, but keeping the entire debugging loop inside the terminal window.

What it designed to do

Intelligent Terminal adds an agent pane, a status bar, and command palette integration that can trigger AI tasks using live terminal context. It detects command failures automatically and can pass error output directly to an AI agent for explanation or fixes.

GitHub Copilot CLI is the default agent, but the system is built around the Agent Client Protocol (ACP), meaning users can plug in other compatible or even local agents instead of Copilot.

How Intelligent Terminal works

The AI layer runs alongside the shell, not inside it. Commands continue to execute normally, while the agent operates in a separate context window or background session. This allows parallel debugging without blocking terminal work.

For quick shortcuts, you can use:

• Ctrl + Shift + . shows or hides the agent panel.
• Ctrl + Shift + / also shows or hides the agent panel
• Ctrl + Shift + I changes input focus between the terminal and agent.
• Alt + Shift + / brings up the agent command palette.

Install Intelligent Terminal

On Windows 11, you can install the Intelligent Terminal through the Microsoft Store or directly from Command Prompt (admin) through the winget tool.

If you choose to use the winget command-line tool, you’ll have to run this command:

winget install Microsoft.IntelligentTerminal

It’s also possible to download the installer from the official GitHub page.

In addition, you can configure the experience from Intelligent Terminal > Settings > Agents, where you can also change the default (GitHub Copilot) AI model to another you have configured on your device.

Bottom line

Microsoft is not replacing Windows Terminal. It is turning it into a modular platform where AI agents can be swapped, extended, or removed depending on how developers want to work.