Despite their introduction in mid-second quarter, AI-capable PCs accounted for 14% of the global PC shipments, a figure reported by a study from Canalys released on Tuesday.

The report by Canalys indicated that there were 8.8 million shipments of AI-capable PCs in the period, with Microsoft Windows operating on 40% and macOS on 60% of these devices.

An AI-capable PC is described by Canalys as either a desktop or a notebook equipped with specific chipsets or blocks dedicated to handling AI tasks, such as neural processing units (NPU).

The analysis further highlights that with comprehensive progress on the AI-focused PC product roadmaps from major processor manufacturers, a considerable increase in the availability and adoption of these devices by end-users is anticipated in the latter half of 2024 and beyond.

“The second quarter of 2024 has been pivotal in accelerating the growth of AI-enhanced personal computers,” stated Canalys Principal Analyst Ishan Dutt.

“June introduced the Copilot+ PCs that incorporate the new Qualcomm Snapdragon X series chips, utilizing Arm architecture,” Dutt noted. “Despite shipment numbers being modest due to the brief period and limited regional availability post-launch, the strong adoption of these new products by Windows OEMs suggests a promising future for this technology segment.”

“With these developments, we expect shipments of AI-capable PCs to increase significantly in the latter half of 2024,” Dutt mentioned further.

Moreover, Dutt elaborated on the strategies of processor vendors and OEMs aiming to capture a broader customer base by diversifying the new product categories across different price ranges. He highlighted that channel partners are increasingly prioritizing AI capabilities in PCs, with a notable 60% of respondents in a May survey anticipating a customer preference for devices equipped with a Copilot feature.

“The market performance of AI-capable PCs has largely aligned with expectations, and the industry remains on track to ship around 44 million units in 2024 and 103 million units in 2025, according to Canalys forecasts,” he added.

Mikako Kitagawa, director and analyst with Gartner, a research and advisory company based in Stamford, Conn., asserted that OEMs have shown a strong commitment to AI-capable PCs. However, she acknowledged to TechNewsWorld, “The AI PC trend is supply-led, not demand-led.”

“The recent rise of AI-capable PCs represents the hardware industry trying to solve the chicken-and-egg problem by providing a large installed base for application developers to target,” said Dev Nag, CEO and founder of QueryPal, an enterprise chatbot based in San Francisco.

“There aren’t a ton of mainstream applications that need NPUs yet — as opposed to, say, GPUs — but there are a number of compelling possibilities that these vendors are hoping to kickstart,” he told TechNewsWorld.

Nag highlighted potential applications such as enhanced real-time video for calls, sophisticated photo editing capabilities, instantaneous language translation, and improvements in productivity tools including smart document summarization and enhanced local file search.

“OEMs are showing cautious optimism,” remarked Nag. “They recognize the potential for significant technology upgrades and are keen to maintain strategic partnerships with Microsoft.”

“Their primary focus is to incorporate NPUs within premium and business-oriented segments initially, then expand to the general consumer market,” he continued.

According to a Canalys report, there was noticeable growth in AI-equipped PCs in the premium Windows PC market over $800, with market penetration rising from 7% to 14% from the first to the second quarter.

Nag predicted, “We’ll likely see a gradual increase in AI PC market share to the mid to high 20% level next year, but the lack of applications will slow adoption.”

“If the application market starts to move towards taking advantage of this hardware,” he continued, “we could see the first ‘killer apps’ driving faster adoption in 2025.”

Much of that early adoption will likely come from the enterprise. “Large enterprises will probably be the fastest segment to adopt AI PCs going forward because many AI tasks will move from the cloud to local,” Kitagawa explained. “Large enterprises prefer that way, making AI PCs more useful.”

While enthusiasm for AI-capable PCs has been strong for vendors, it’s been less so for consumers. “So far, consumer reaction to the AI PC has been tepid,” said Andrew Hewitt, a principal analyst with Forrester, a market research company headquartered in Cambridge, Mass.

He referenced a study by Forrester conducted in the second quarter of this year, revealing that over fifty percent of U.S. consumers are unfamiliar with what an AI PC is.

“There is significant confusion regarding what distinguishes an AI PC from a conventional PC,” he explained to TechNewsWorld. “This confusion largely stems from the average consumer’s lack of understanding of the differences among a CPU, GPU, and the newer neural processing unit (NPU), which characterizes AI PCs but isn’t their only defining feature.

“Furthermore, general users tend to equate AI-powered tools like ChatGPT and Copilot with AI PCs instead of recognizing changes in hardware technology.”

Nag also noted that many Apple laptop buyers might not even realize that their devices have AI capabilities through Apple’s Neural Engine, nor do they consider app compatibility as a decision-making factor.

“Microsoft’s launch of the Copilot Key for AI-capable PCs earlier in the year was not driven by current market demands, but rather as an initiative to shape future market direction,” he stated.

He mentioned that some early adopters have expressed concerns over the potential monopolization of AI-dedicated NPUs despite many GPUs offering similar or superior AI processing capabilities. “However, aside from these early adopters,” Nag pointed out, “the general response has been more about lack of attention than confusion. Application development will play a larger role in increasing general awareness than the hardware itself.”

Hewitt concurred that most AI PC adoption will be led by corporate sectors. “However, we don’t foresee significant mass adoption until 2025, coinciding with many businesses migrating from Windows 10 to Windows 11 to align with the latter’s end-of-life schedule,” he remarked.

“Based on our analysis, we anticipate significant usage among specific user groups such as creatives, developers, and data scientists, who stand to gain substantially from applications designed to leverage the NPU,” he further noted.

HP Newquist, executive director of The Relayer Group, a science and technology exhibition organization based in New York City and author of “The Brain Makers: Genius, Ego & Greed In The Quest For Machines That Think,” suggests that the AI PC is currently more of a marketing gimmick than a substantial innovation.

“Manufacturers are loading up standard PCs with various new AI applications, most of which are developed on broad language models like OpenAI’s ChatGPT,” he mentioned to TechNewsWorld. “In certain cases, these PCs are equipped with extra processing capabilities akin to those found in gaming PCs.”

“Microsoft’s version of the AI PC, promoted by companies such as Dell and HP, incorporates Copilot within Windows, making it a part of the operating system,” he stated, “yet Copilot can also be accessed online by any Microsoft user, so it isn’t exclusive to AI PCs.”

“The introduction of advanced AI processors, which Microsoft refers to as neural processing units, mainly enhances speed rather than augmenting AI capabilities,” he added. “Until more AI applications can operate locally without the need for substantial cloud-based resources, these AI processors won’t reach their full potential. The applications will continue to depend heavily on internet connections for processing.”

“At this stage, constructing a PC with such processing capabilities is akin to establishing an eight-lane highway for mopeds,” he continued. “The highway is prepared, yet the mopeds are unable to damage the roads as they are not built for such speed.”

Welcome to DediRock, your trusted partner in high-performance hosting solutions. At DediRock, we specialize in providing dedicated servers, VPS hosting, and cloud services tailored to meet the unique needs of businesses and individuals alike. Our mission is to deliver reliable, scalable, and secure hosting solutions that empower our clients to achieve their digital goals. With a commitment to exceptional customer support, cutting-edge technology, and robust infrastructure, DediRock stands out as a leader in the hosting industry. Join us and experience the difference that dedicated service and unwavering reliability can make for your online presence. Launch our website.