This will be preaching to the choir for some readers, as you didn't exactly need another reason not to use Windows right? Microsoft's new Recall AI will take screenshots of everything you do and that sounds truly terrible.
So let's assume it isn't opt-in (it probably is though) -- you've still yet to explain how an application taking screenshots, even without your knowledge, violates GDPR.
Local and optional. Most small and mid sized businesses won't have concerns more than any locally cached session and Enterprise MS is well trusted with company data IMO. There will be plenty of on-premises folks who continue when this path but this isn't as big as a concern as privacy folks are making it out to be. Copilot already has strong restrictions on what data is used for training for customers and what gets sent back to update Microsofts model (none of it).
It's a locally proccesed model that doesn't contribute to MS's learning in any way. One of the more responsible approaches IMO.
Ignoring that you have ignored both the article and my comment pointing out it's local...
The millions of businesses that use M365 + Windows says otherwise. And yes, MS has plenty of customer data within the EU. There are additional restrictions on reporting and deletion, but the EU azure cloud has petabytes (at least) worth of data and it all complies with GDPR as well as public sector tenants in all regions.
Even then, do you know how many companies use Microsoft for everything including their most confidential data?You live in a foss bubble if you believe regular people/companies don't trust Microsoft to reasonable degree.