It does not move the file/folder for collaborators, so no need to worry that you will cause a problem for others sharing the file.It is a link back to the actual file (or folder), so that it is always the most up to date version.It does not create a copy of the file/folder.Some important things to understand about “Add to Drive” feature: Using the “Add Shortcut to Drive” option for shared or View only files (or folders), allows you to place the file (or folder) into your Drive in a location that makes sense for you. Remember, “Shared with Me” is a label indicating a file originated from someone else. NOTE: File or folder you Add to Drive will remain listed in Shared with Me. File or folder will move to “My Drive” or you can choose “Organize” to choose a specific location.From the menu, choose “+ Add Shortcut to Drive”.Right click (Command Click for Macs) on the file or folder.This makes items easier to find when you need them. Use the “Add Shortcut to Drive” option to link files or folders from “Shared with me” to any location within your Google Drive.

How to share google drive file link