PowerOCR(Opens in a new window) is the name of the utility, which is appropriate given that it is a PowerToy that relies on optical character recognition (OCR) to function. PowerOCR was developed by a mechanical engineer named Joseph Finney, who claims that it enables Windows users to “perform OCR anywhere on screen by selecting a rectangular region, clicking a word, or right-clicking an image file and selecting PowerOCR.”
It is still in development, and the first version of PowerOCR will not support all of those features. According to Finney, as of August 16, the ability to invoke the utility by right-clicking an image had not yet been implemented.
Although Microsoft has implemented OCR in some of its apps (the most notable example being OneNote(Opens in a new window)), Windows does not have a dedicated tool for extracting text from images.
That was also true on the Mac until Apple introduced Live Text with macOS Monterey. Live Text makes it simple to extract text from images and perform various actions on the copied text.
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On Windows, PowerOCR provides a similar, albeit more limited, tool. The PowerToy’s release date is unknown, but development is ongoing, and its progress can be tracked on GitHub (Opens in a new window).