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Folders allow you to organize your files in Google Drive. They also allow you to more efficiently share a collection of documents. If you've switched to the new Google Drive you can create a folder by clicking on the reddish "NEW" button and choosing folder.

Innovation is critical for business success, so we're constantly trying to build tools that enable our customers to do more. Starting today, you can use Natural Language Processing (NLP) and other new and improved features in Drive search on web to find files easier and faster.