Dell and Intel acknowledge Windows 11 as an AI-driven PC potentiality
The market for AI PCs is experiencing a surge in growth, with rapid increases in shipments, significant enterprise adoption, and higher average selling prices. According to industry analysts, AI PCs are expected to represent approximately 40-44% of all PC shipments by 2025, with over 100 million units shipped by the end of the year, and this number expected to reach 205 million by 2028[1][2].
This growth is being driven by several key trends. The impending end of Windows 10 support in late 2025 is spurring a hardware refresh wave, particularly in corporate IT environments[1][2][3]. The development of dedicated AI hardware on devices is enabling better productivity, power efficiency, security, and personalized experiences[1]. Competition between CPU architectures (x86 vs. Arm) is intensifying, with new chip launches from Intel, AMD, Qualcomm, and others focusing on AI-capable platforms[2][3]. Recovery in key regional markets, such as China, is also contributing to the growth[2].
However, the demand for AI PCs is perceived as slower or more cautious than expected for several reasons. The AI PC market is boosting average selling prices rather than significantly expanding the total addressable market size, meaning upgrades are often replacements rather than new buyers expanding the market[2]. The real-world adoption of innovative AI PCs like Microsoft's Copilot+ brand is only now becoming widespread as Windows 10 reaches end of life, delaying the full market impact until 2025 and beyond[1]. Regulatory, tariff, and supply chain uncertainties, including production shifts away from China, may also temper shipment volumes in the short term[4]. Intel's growing competition from AMD and others in the PC CPU market is also affecting the push and innovation pace from major brands[2][3].
PC makers like Dell and Intel are actively pushing this trend with advanced AI-capable hardware. However, they may need to reconsider their premium pricing strategy if they want to encourage more buyers. According to market intelligence firm Context, demand for AI PCs is currently "pretty slow," despite a big push from major brands[5]. A report from Dell and Intel, titled "Windows 11 & AI PC Readiness Report," argues that businesses should prioritize AI-ready PCs in their refresh cycle[6]. They encourage corporate buyers to view the upgrade from Windows 10 to Windows 11 as an opportunity to prepare for AI benefits[6].
The report by Dell and Intel finds that 62% of respondents are more likely to choose a Copilot+ AI PC[6]. However, the lack of a "killer app" or software justifying the investment is the biggest issue, according to Context senior analyst Marie-Christine Pygott[7]. Despite this, 64% of respondents felt it was either critical or very critical for their organization to ensure that new PCs are powerful enough to run AI applications effectively[7].
The latest report states that Windows 11 and AI PCs can provide a significant edge in productivity[8]. Intel's definition of an AI PC is a system with a CPU, GPU, and an NPU, while Microsoft uses the term "Copilot+ PC" to describe Windows systems with an NPU capable of 40 TOPS or more[9]. The Dell and Intel report, based on a survey of 1,000 IT decision makers conducted by Focaldata, finds that 80% of UK businesses are switching to Windows 11, although there are some barriers to migration[10].
However, a study published by Intel last year found that workers using PCs with built-in AI services were less productive than those using traditional hardware[11]. Despite this, the report by Dell and Intel suggests that organizations that embrace AI will gain a significant edge in productivity, while those that delay risk falling behind[12]. The Dell UK's Client Solutions Group senior director, Louise Quennell, sees the upgrade as a chance to reimagine PCs and IT infrastructure for increased productivity, collaboration, and security[13].
In summary, the AI PC market is growing rapidly due to key drivers like OS lifecycle transitions and growing AI integration. However, adoption lags due to the replacement-driven nature of demand, higher prices limiting broader market expansion, and external uncertainties affecting supply and upgrade cycles. Major brands like Dell and Intel are actively pushing this trend with advanced AI-capable hardware, but widespread demand will likely ramp up gradually as enterprises and consumers fully embrace AI-driven productivity enhancements[1][2][4].
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] are the references for the information provided in this article.
- The development of dedicated AI hardware on devices is enhancing security, productivity, and personalized experiences for AI PCs, as mentioned in the impending growth of the AI PC market.
- The AI PC market's expansion is anticipated to contribute significantly to the technology sector, particularly business and finance, as enterprises prioritize AI-ready PCs in their refresh cycles, according to the Dell and Intel report.
- Competition between various hardware providers such as Intel, AMD, Qualcomm, and others is critical to the growth of the AI PC market, as they focus on developing AI-capable platforms to better cater to the demands of technology-driven industries like software and AI.
