Dive Brief:
- AI-optimized PCs will completely take over enterprise computer purchases by the end of 2026 as AI tasks become more ubiquitous in the workplace, according to Gartner projections released Wednesday.
- The enterprise push toward AI-ready computing is already driving demand for chips. The analyst firm expects AI semiconductor revenue to surpass $71 billion globally in 2024, up 33% year-over-year.
- AI computers — which Gartner describes as those including a neural processing unit — will represent more than 1 in 5 of global PC shipments this year, according to the projections.
Dive Insight:
Enterprise AI needs are putting more CIO attention on available computing power, driving cloud costs up as new tools hit the IT stack. PC makers are hoping to capture some of that spending, touting the advantages of AI computing that takes place at the edge.
Dell is among the PC makers bringing AI PCs to the market. The company announced its line of AI-ready Latitude PCs in February, which features integrated NPUs.
"We remain bullish on the coming PC refresh cycle and the longer-term impact of AI on the PC market," said CFO Yvonne McGill, speaking in February during the company's Q4 2024 earnings call.
Microsoft also rolled out its Copilot+ AI PC series on May 20, which it called the "fastest, most intelligent Windows PCs ever built." The devices connect to LLMs running on Azure as well as small language models.
Infrastructure costs and privacy concerns will lead more end user-centric generative AI applications to run at the point of use instead of a data center, said Gartner VP Analyst Alan Priestley in a research note.
"Developers of applications that run on PCs are already exploring ways to use GenAI techniques to improve functionality and experiences, leveraging access to the local data maintained on PCs and the devices attached to PCs — such as cameras and microphones," Priestly said.
IDC also expects the push toward locally-run AI workloads to drive AI-ready PC demand, tripling shipments over the next three years and taking up nearly 60% of the broader PC market by 2027, according to the firm's projections.
"Promises around enhanced user productivity via faster performance, plus lower inferencing costs, and the benefit of on-device privacy and security, have driven strong IT decision-maker interest in AI PCs," said Tom Mainelli, group VP, Devices and Consumer Research, in the February report. "In 2024, we'll see AI PC shipments begin to ramp, and over the next few years, we expect the technology to move from niche to a majority."
