How To Add AD Users & Groups To Local Groups Via GPO

To add an AD user or group to a local group through AD, navigate to here in Group Policy:

Computer Configuration -> Preferences -> Control Panel Settings -> Local Users and Groups

Then right click and add a new local group, then follow your nose around the dialog box to add AD users or groups to the local group. Note that you can’t change / replace built-in local groups – you can only update them.