Update AI Shell docs for preview7 release

Author: sdwheeler

reference/docs-conceptual/AIShell/how-to/agent-openai.md

@@ -1,7 +1,7 @@
 ---
 title: OpenAI agent
 description: Learn how to configure the OpenAI agent.
-ms.date: 08/25/2025
+ms.date: 09/09/2025
 ms.topic: how-to
 ---
 # OpenAI agent
@@ -134,42 +134,98 @@ Azure OpenAI uses the following hierarchy of credentials for authentication:
 - `InteractiveBrowserCredential`
 
 For more information about these credentials, see .NET documentation for
-[`DefaultAzureCredential`][07].
+[`DefaultAzureCredential`][09].
 
 ## Support for other OpenAI-compatible models
 
 The OpenAI agent supports third-party AI services that implement the OpenAI API specifications. Some
 of these models are open source tools for running SLMs and LLMs locally. The OpenAI agent supports
 the following 3rd-party models:
 
-- [**Ollama**][06]
-- [**LM Studio**][04]
-- [**Deepseek**][02]
-- [**LocalAI**][05]
-- [**Google Gemini**][01]
-- [**Grok**][03]
+- [**Ollama**][08]
+- [**LM Studio**][06]
+- [**Deepseek**][04]
+- [**LocalAI**][07]
+- [**Google Gemini**][03]
+- [**Grok**][05]
+- [**Foundry Local**][02]
 
-For more information about endpoints and model names, see the 3rd-party documentation for the AI
-service you want to use.
+Foundry Local is an on-device AI inference solution from Microsoft, currently in public preview. AI
+Shell interfaces with it using the OpenAI agent. You must install and configure Foundry Local on
+your machine before you can use it with AI Shell. For more information, see
+[Get started with Foundry Local][01].
 
 The OpenAI agent supports the following model names:
 
 - `o1`
 - `o3`
 - `o4-mini`
+- `gpt-5`
 - `gpt-4.1`
 - `gpt-4o`
 - `gpt-4`
 - `gpt-4-32k`
 - `gpt-4-turbo`
 - `gpt-3.5-turbo`
 - `gpt-35-turbo` - Azure OpenAI name of the model
+- Any of the model IDs supported by Foundry Local
+
+For more information about endpoints and model names, see the 3rd-party documentation for the AI
+service you want to use.
+
+### Configure a Foundry Local endpoint
+
+After you have Foundry Local installed, run the following commands to get the information you need
+to configure the OpenAI agent:
+
+```powershell
+PS> foundry service start
+🟢 Service is already running on http://127.0.0.1:56952/.
+
+PS> foundry model load phi-3.5-mini
+🕔 Loading model...
+🟢 Model phi-3.5-mini loaded successfully
+
+PS> foundry service ps
+Models running in service:
+    Alias                          Model ID
+🟢  phi-3.5-mini                   Phi-3.5-mini-instruct-generic-cpu
+```
+
+This example starts the Foundry Local service, loads the `phi-3.5-mini` model, and lists the models
+in the running in the service.
+
+Next, add a new GPT to your `openai.agent.json` file.
+
+- The `foundry service start` shows the URI for the service. The `Endpoint` for the OpenAI agent is
+  the URI plus `/v1`.
+- The `foundry service ps` command shows `ModelName` as the **Model ID**. Make sure you use the
+  exact casing as shown in **Model ID**. Foundry Local is case-sensitive.
+- The API key is hardcoded to `OPENAI_API_KEY`.
+
+```json
+{
+  "GPTs": [
+    {
+      "Name": "foundry-local",
+      "Description": "A GPT instance using Foundry Local.",
+      "Endpoint": "http://127.0.0.1:56952/v1",
+      "ModelName": "Phi-3.5-mini-instruct-generic-cpu",
+      "Key": "OPENAI_API_KEY"
+    }
+  ]
+
+  "Active": "foundry-local"
+}
+```
 
 <!-- link references -->
-[01]: https://ai.google.dev/gemini-api/docs/openai
-[02]: https://api-docs.deepseek.com/
-[03]: https://docs.x.ai/docs/overview#migrating-from-another-llm-provider
-[04]: https://lmstudio.ai/docs/api/openai-api
-[05]: https://localai.io/
-[06]: https://ollama.com/blog/openai-compatibility
-[07]: xref:Azure.Identity.DefaultAzureCredential
+[01]: /azure/ai-foundry/foundry-local/get-started
+[02]: /azure/ai-foundry/foundry-local/what-is-foundry-local
+[03]: https://ai.google.dev/gemini-api/docs/openai
+[04]: https://api-docs.deepseek.com/
+[05]: https://docs.x.ai/docs/overview#migrating-from-another-llm-provider
+[06]: https://lmstudio.ai/docs/api/openai-api
+[07]: https://localai.io/
+[08]: https://ollama.com/blog/openai-compatibility
+[09]: xref:Azure.Identity.DefaultAzureCredential

reference/docs-conceptual/AIShell/how-to/aishell-reference.md

@@ -1,7 +1,7 @@
 ---
 title: AI Shell command reference
 description: Learn about the command-line options and commands available in AI Shell.
-ms.date: 08/25/2025
+ms.date: 09/09/2025
 ms.topic: reference
 ---
 # AI Shell command reference
@@ -412,6 +412,17 @@ Options:
 
 - `-h`, `--help` - Show help and usage information
 
+## AI Shell command history
+
+AI Shell includes a modified version of PSReadLine. Like the PSReadLine module for PowerShell, AI
+Shell lets you use the arrow keys to navigate through your command history. AI Shell saves the
+history in a file named `AIShell_history.txt`, in the same location as the other PSReadLine history
+files:
+
+- On Windows systems: `$Env:APPDATA\Microsoft\Windows\PowerShell\PSReadLine`.
+- On non-Windows systems: `$Env:XDG_DATA_HOME/powershell/PSReadLine` or
+  `$Env:HOME/.local/share/powershell/PSReadLine`.
+
 <!-- link references -->
 [01]: media/aishell-reference/code-copy-command.gif
 [02]: media/aishell-reference/code-post-command.gif

reference/docs-conceptual/AIShell/overview.md

@@ -1,7 +1,7 @@
 ---
 title: What is AI Shell?
 description: Learn about AI Shell, an interactive shell that provides a chat interface with language models.
-ms.date: 05/21/2025
+ms.date: 09/09/2025
 ms.topic: overview
 ---
 
@@ -16,8 +16,10 @@ The AI Shell project includes:
 - A command-line shell interface (`aish`)
 - A framework for creating AI agents and other assistance providers
 - Integration with Windows Terminal and iTerm2 on macOS
-- A PowerShell module for integration with PowerShell. For more information, see the
-  [AI Shell module][01].
+- A PowerShell module for integration with PowerShell. For more information, see the Copilot+ PCs
+  [AI Shell module][02].
+- Support for MCP servers and tools
+- Support for [Foundry Local][01] deployments
 
 Each AI assistant is known as an agent. The initial release of AI Shell includes two agents:
 
@@ -40,7 +42,7 @@ deeper integration with the shell. These features include:
 
 AI Shell is currently a preview release. Some features of the tool are still being developed and are
 subject to change. For more information about the current version and a complete list of changes,
-see the [Release notes][03].
+see the [Release notes][05].
 
 ## Known issues
 
@@ -66,14 +68,15 @@ Here are ways you can get involved:
 
 - **File Issues:** If you encounter bugs, have suggestions for new features, or would like to report
   inconsistencies, open an issue on the [AI Shell GitHub repository][04].
-- **Join the discussions:** Join our community discussions in the [GitHub discussions][02] tab.
+- **Join the discussions:** Join our community discussions in the [GitHub discussions][03] tab.
   Share ideas, discuss potential improvements, connect with other users, and share any agents you
   create.
 - **Documentation:** If you notice any documentation gaps, you can suggest changes or submit PRs to
   improve our documentation.
 
 <!-- link references -->
-[01]: /powershell/module/aishell/
-[02]: https://github.com/PowerShell/AIShell/discussions
-[03]: release-notes.md
+[01]: /azure/ai-foundry/foundry-local/what-is-foundry-local
+[02]: /powershell/module/aishell/
+[03]: https://github.com/PowerShell/AIShell/discussions
 [04]: https://github.com/PowerShell/AIShell/issues
+[05]: release-notes.md

reference/docs-conceptual/AIShell/release-notes.md

@@ -3,14 +3,26 @@ title: AI Shell release notes
 description: >
   Find out what's new in the latest release of AI Shell, an interactive shell that provides a chat
   interface with language models.
-ms.date: 08/25/2025
+ms.date: 09/09/2025
 ms.topic: overview
 ---
 # AI Shell Release Notes
 
 This document outlines the changes and improvements made in each release of AI Shell. For a more
 complete list of changes, refer to the [Releases page][06] on GitHub.
 
+## 1.0.0-preview.7 - 2025-09-05
+
+This release includes the following changes:
+
+- Move to Azure.Identity v1.14.2 and refactor the telemetry library (#404)
+- Use login shell on macOS to start `aish` in sidecar pane to inherit proper PATH (#403)
+- Properly escape tool description to avoid malformed Markup object (#408)
+- Add gpt-5 models to the supported model list (#409)
+- Update the history file name and exclude the environment and managed-identity credentials from
+  Azure authentication flow (#412)
+- Keep the original casing of model name for custom endpoint to enable Foundry Local (#413)
+
 ## [1.0.0-preview.6][02] - 2025-07-24
 
 <a id="1.0.0-preview.6"></a>

reference/docs-conceptual/overview.md

@@ -20,7 +20,7 @@ This documentation set contains cmdlet reference for the following modules.
 - [PSScriptAnalyzer][06]
 
 <!-- link references -->
-[01]: /powershell/module/aishell
+[01]: ./AIShell/overview.md
 [02]: /powershell/module/microsoft.powershell.crescendo/
 [03]: /powershell/module/microsoft.powershell.secretmanagement/
 [04]: /powershell/module/microsoft.powershell.secretstore/