Dive Brief:
- Microsoft will add a Copilot key on Windows PCs, marking the company’s first significant change to its PC keyboard in nearly 30 years, the company said Thursday.
- When the key is pressed, users can access Microsoft’s generative AI assistant Copilot for help with daily tasks, from creating images to research and summarization, according to a blog post.
- Users will begin to see the Copilot key appear on new Windows 11 PCs and upcoming Surface devices later this month through Spring.
Dive Insight:
Vendors, including Microsoft, hope demand for AI-ready PCs can shake the persistent decline in shipments as enterprises enter a hardware refresh cycle.
Organizations are ready to upgrade PCs after stocking up on devices to support remote workforces, but this time tech leaders have one more thing to consider when procuring devices: AI capabilities.
Intel’s Core Ultra chips, designed to support AI workloads, are expected to be deployed in more than 230 PC models, with plans to ship over 100 million client processors in the next two years, the company said last month.
Dell Technologies partnered with Nvidia to bring generative AI capabilities to on-prem services and workstations in May.
Microsoft’s upcoming Copilot key follows previously announced updates to Windows 11, which featured a partnership with Nvidia to infuse the operating system with a suite of AI capabilities for PC users.
While the keyboard addition is not “game-changing from a hardware perspective,” according to Jason Wong, distinguished VP analyst at Gartner, it is a starting point for rethinking how users interact on Windows.
“As more hooks are built into the Windows operating system and into applications, and as applications build plugins into Copilot, it can become more useful,” Wong said. “Initially, there’s not a whole lot of utility to using it as a shortcut, per se.”
The key serves more as a nod to Microsoft’s hope to change user behavior as it embeds generative AI across its suite of products, Wong said.
Enterprise demand for PCs that have generative AI upgrades is expected to rise in the coming years. By the end of 2024, AI-capable PC shipments are expected to increase, capturing more than one-quarter of global PC shipments, according to a September report conducted by market analyst firm Canalys. AI-capable PC shipments will reach 60% of global PC shipments by 2027, according to the research firm’s data.
Microsoft’s Copilot key has the potential to enhance end-user experience, but it’s not enough to pull in customers alone, according to Scott Bickley, advisory practice lead at Info-Tech Research Group.
“Adding a key on a keyboard does not move the needle for my purchase decision on a minimum spend of $108k USD per year for my organization,” Bickley said in an email. “It does reinforce that Microsoft is all-in on Copilot, and that means we can expect to see them diversify and modify their commercial offerings for both enterprises and consumers over time.”
