Tech giants like Microsoft and Qualcomm are aggressively promoting a new category of computers dubbed 'AI PCs,' which boast integrated AI capabilities. These machines feature dedicated processors designed to enhance AI functions such as personal assistants and task automation, distinguishing them from standard laptops and desktops.

Despite the hype, only a tiny fraction-just 3%-of PCs shipped this year meet Microsoft's stringent processing power criteria to qualify as AI PCs, according to IDC. Analysts remain sceptical about the practical utility of these AI features, noting limited software support beyond Microsoft's ecosystem. Major developers like Adobe, Salesforce, and SentinelOne have hesitated to optimise their applications for AI PCs, preferring to deliver AI capabilities via cloud services.

While some smaller software firms have tailored their apps for on-device AI, more considerable adoption hurdles persist. Initial reviews highlight that current AI functionalities on these PCs, such as eye-tracking during video calls and generative AI content creation, are often seen as gimmicks rather than transformative tools. Furthermore, privacy concerns delayed the rollout of flagship AI features like Microsoft's Recall.

Why does this matter?

Despite challenges, industry players are optimistic about the potential of AI PCs to rejuvenate the stagnant PC market. With superior battery life and promises of enhanced performance, these devices aim to entice consumers who last upgraded at the pandemic's onset. Market data from Circana indicates early traction, particularly among tech-savvy users and content creators.

Looking ahead, Qualcomm, vying to challenge Intel's dominance in PCs, plans to market its Snapdragon processors for AI PCs aggressively. Intel and AMD are expected to release competing models later this year, addressing compatibility issues that currently limit adoption. Industry analysts project AI PCs to comprise about 20% of new PC shipments by 2026, signalling a slow but steady shift towards AI-enhanced computing solutions.