As organizations increasingly leverage artificial intelligence (AI), a growing number are adopting AI-enabled personal computers to mitigate cloud computing expenses, enhance productivity, and safeguard sensitive corporate information.
Ketan Patel, president of HP’s personal systems division, reported that AI PCs constituted 35% of the company’s total PC shipments in the latest fiscal first quarter, up from 30% in the previous quarter. In an interview, Patel emphasized that the initial procurement of AI PCs in early 2025 was primarily motivated by a desire to future-proof technology investments, as enterprise clients fear missing out on innovative technologies during their usual hardware refresh cycles.
However, the momentum shifted in the latter half of the year as companies began experiencing tangible returns on investment (ROI) from AI PCs, spurred by the rising costs associated with utilizing cloud-based AI services. “When customers access AI via the cloud, the number of tokens consumed and their related costs are becoming pivotal discussions,” Patel explained. “If you can deliver an efficient experience on a device, it presents a compelling ROI.”
The demand for AI PCs is also driven by privacy concerns. The emergence of compact, efficient language models allows enterprise users to analyze local documents and data on AI PCs while preserving confidentiality and adhering to compliance standards. Additionally, applications sensitive to latency, such as live translation services and retail operations employing edge-based ambient AI, are transitioning inferencing from the cloud to AI PCs equipped with neural processing units (NPUs).
A key factor fueling the demand for AI PCs is the growing reliance on digital assistants that enhance user productivity. Research from Microsoft found that the most efficient users of Copilot saved around 10 hours per month, while the average user saved nearly five hours. Recently, some users of the Claude Cowork agentic AI tool, designed to work with local files and applications, reported productivity gains of at least 10 hours weekly. Anthropic, the creator of Claude, has introduced plugins for Cowork that facilitate specific job functions, including sales, legal work, and financial analysis.
AI PCs are also being utilized for endpoint security, with suppliers like ESET employing NPUs to operate AI models for threat detection, leading to improvements in scanning efficiency and energy consumption.
Asia's Rapid Adoption
Patel observed that the uptake of AI PCs is accelerating in Asia, a region that initially trailed North America in terms of adopting the necessary Windows 11 operating system. “The refresh to Windows 11 was more rapid in the U.S. last year, and now Asia is catching up significantly,” he noted, citing strong growth in the Asian market over the past two quarters.
The region's vibrant software industry plays a crucial role in this growth. “Numerous companies within the software ecosystem are eager to adopt the latest technologies,” Patel remarked, adding that HP’s Garage 2.0 initiative actively collaborates with startups and independent software vendors (ISVs) in the region to co-develop local and hybrid AI applications.
This optimism aligns with broader industry forecasts. Research firm Gartner has projected that AI PCs will account for 31% of the global PC market by the end of 2025, with a forecast of 55%—or 143 million units—by 2026. By 2029, AI PCs are expected to become standard in the industry.
Despite the rising adoption rates, the AI PC market faces significant challenges, including macroeconomic factors and supply chain issues. Analyst IDC has recently cautioned that an ongoing global memory shortage could lead to an overall contraction of the PC market by approximately 5-9% in 2026.
To sustain its sales momentum in the AI PC sector, HP is focusing on security enhancements by investing in its Wolf Security stack, which aims to differentiate its hardware and assist customers in defending against increasingly sophisticated cyber threats and AI-enabled attacks.
Furthermore, the conversation around AI PC purchases is broadening beyond traditional IT procurement teams, now incorporating line-of-business leaders, such as customer support directors, who are advocating for AI-first workflows. “Our sales strategy is evolving to focus more on business leaders’ value propositions, while still ensuring we navigate the standard IT and procurement processes,” Patel explained.
The growing influence of business decision-makers may also reshape procurement models. While HP’s device-as-a-service (DaaS) offerings currently do not include outcome-based pricing tied to AI capabilities, Patel noted that such pricing models are under consideration. “We foresee a scenario where our DaaS can deliver specific outcomes in targeted areas, supported by a subscription model,” he said, indicating that this concept is still in development.
With memory manufacturers shifting their production towards high-bandwidth memory to meet the demands of AI data centers, PC manufacturers are facing tight supply constraints for standard RAM components. Given that AI PCs require more memory to efficiently run local models, these shortages could result in price increases and hinder overall unit growth in the coming year.
Source: ComputerWeekly.com News