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### AI-capable Devices Set to Dominate Market by 2027

Generative AI – huh – what is it good for? Premium priced PC sales, apparently says Can…

According to Canalys, the AI-enabled PC market is emerging as a lifeline for a declining industry. However, vendors need to transparently communicate the benefits to command higher margins for their products.

Canalys’ report on the current and future landscape for AI-capable PCs defines such devices as desktops or laptops equipped with specialized processors for on-device AI tasks.

While older PCs with decent CPUs and GPUs can handle AI workloads, dedicated hardware offers better performance, lower latency, and the crucial ability to operate offline. Certain tasks are simply not suited for cloud-based solutions.

The introduction of ChatGPT just over a month ago has sparked significant interest in AI technologies. Canalys views Generative AI as a powerful force across various tech sectors, potentially ushering in a new wave of innovation and user experiences.

Despite PCs being primarily associated with productivity, Canalys believes that embedded AI technologies could revolutionize the industry, particularly for vendors facing declining sales.

IDC’s endorsement of AI PCs as a pivotal moment in the industry underscores the growing interest, though specific use cases are yet to be fully defined.

Gartner’s cautionary stance, as articulated by research director Ranjit Atwal, suggests that the anticipated changes may not be revolutionary enough to drive widespread adoption of AI PCs.

Canalys predicts a significant uptick in AI-ready Apple Macs by 2024, with a projected 60% of laptops shipped in 2027 expected to be AI-capable.

Manufacturers like AMD, Intel, and Qualcomm are heavily promoting AI capabilities in their products, making it increasingly challenging for consumers and businesses to opt for non-AI devices.

With the end of Windows 10 support in 2025, the industry is looking towards AI-capable PCs to enhance efficiency and productivity, especially in data processing and content creation tasks.

The transition towards AI-capable PCs is expected to accelerate as businesses recognize the benefits of integrating AI into their workflows, potentially reaching a critical point by 2025.

Microsoft’s future OS plans, possibly Windows 12, are likely to prioritize AI integration to drive user adoption of AI-capable hardware.

Major manufacturers are gearing up for the AI revolution, with AMD, Intel, and Qualcomm leading the charge in producing AI-capable devices.

As the market anticipates a resurgence in 2024, HP and Asus are already positioning themselves to capitalize on the AI wave, foreseeing substantial growth and new customer experiences.

While the inevitability of AI-capable PCs is clear, effective marketing of their advantages will be crucial for widespread adoption, especially in light of the industry’s prolonged sales decline.

The upcoming PC delivery data for Q4 is eagerly awaited, with vendors hoping for a turnaround after ten consecutive quarters of diminishing sales.

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Last modified: January 11, 2024
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