Embracing the Power of AI-Capable PC in Your Office

"Unleashing the Future: How AI-Capable PCs Are Revolutionizing the Workplace"

AI-Capable PC

The next generation of AI-enabled PCs will change the way we work. According to Canalys, these new devices, which perform a significant portion of their processing requirements using cloud services and a small amount of on-device computing, will help users work more effectively and unlock their creative potential. The era of the “AI PC” will provide significantly enhanced performance, security and personalization. Ahead of its arrival, Canalys has been hard at work crafting a benchmark definition for AI-capable PCs, as well as considering how to segment this potential future... By embedding AI capabilities in the PC, with a special focus on the commercial environment, where the go-to-market strategy will be to connect the AI PC to corporate networks to populate devices with well-tested machine-learning outputs.

Canalys anticipates an initial, albeit limited, adoption phase primarily among specific business functions and tech-savvy power users necessitating robust hardware for intensive AI workloads. Over the next five years, the proliferation of AI-capable PCs is expected to intensify, fueled by a burgeoning marketplace featuring fine-tuned Large Language Models (LLMs) and AI tools. Concurrently, operating systems are predicted to undergo a metamorphosis with robust AI integration, catalyzing a surge in adoption by 2025 during the forecasted market replacement cycle. Canalys projects that, by 2027, a substantial 60% of PCs will boast AI capabilities.

AI-Capable PC

This groundbreaking adoption, however, will commence within niche user segments before transitioning into mainstream usage. Canalys identifies specific business roles and organizational types as early adopters. Examples encompass research and development, developers, engineers, data analysts, and artists, who stand to benefit from AI-enabled PCs' accelerated processing power for specialized tasks.

Despite the promise of innovation, Canalys recognizes the initial challenge of cost sensitivity and price barriers. AI-capable PCs, being high-end devices necessitating powerful components for local AI workloads, may encounter resistance. The cost structure of AI-driven applications, distinct from the devices, further complicates widespread adoption. Using Microsoft 365 Copilot as an example, Canalys illustrates potential cost implications, emphasizing the need for businesses to be selective in providing access to AI-capable PCs amid current restrained IT spending.

Looking forward, Canalys anticipates two key developments: a raft of new AI applications optimized for on-device processing, and a shift in many existing cloud-based AI apps toward a hybrid model incorporating local processing. Integration of AI into devices is also expected to drive down costs for many applications, giving even more consumers access to AI.

The article delves into the potential time-saving impact of AI-enabled PCs, presenting a future where a digital twin assists in daily tasks. Real-time transcription, translation, and comprehensive meeting summaries are envisioned, transforming the work dynamic.

Privacy is still the top concern. The company knows that marketing AI-capable PCs as having better security is paramount -- no one's going to buy into the concept if they think their personal and work data is up for grabs. Assurances that your info will stay on your device are ongoing strategies to quell suspicions.

The company is taking a long-term view of the commercial PC market. It sees growth lasting for another two years, which would neatly take it past Windows 10's expected end of life in October 2025. At that point, Canalys considers it an "inflection point" where businesses will have adopted AI-capable systems, and "most" new purchases will include the technology. The debut of AI-enhanced features in the latest Windows release by late 2024 should help things, and there's the promise of AI tools being built into commercial software -- 2025 and 2026 could represent a sea change.

How will AI-enabled PCs transform the workplace?

AI-enabled PCs, as per Canalys, promise a significant boost in productivity and creativity. By combining cloud and on-device computing, these "AI PCs" are set to deliver enhanced performance, security, and personalization.

What criteria define Canalys's benchmark for AI-capable PCs?

Canalys is actively defining benchmarks for AI-capable PCs. The focus is on embedding AI in PCs, especially in the commercial realm, connecting them to corporate networks for well-tested machine-learning outcomes.

Who are the early adopters of AI-capable PCs?

Early adopters are expected to be specific business functions and tech-savvy power users, including roles in research and development, developers, engineers, data analysts, and artists. They stand to benefit from the accelerated processing power tailored for specialized tasks.

This, the analyst firm says, may lead some to believe that AI-capable PC adoption will substantially raise the overall PC TAM from a unit perspective, but Canalys doesn’t see it that way. In its report, it says that AI capability is going to come in right around the expected peak of the current refresh cycle — in 2024 and 2025. This adoption will pull forward some demand from future upgrades, which the company says, will create significant revenue opportunities for OEMs and channel partners.

While it says that there will be advantages for both the consumer and commercial segments as a result of on-device AI advancements, Canalys suggests that businesses will be quicker to adopt. This is because there will be plenty of “tech-savvy organizations” who can “sufficiently strategize” their AI rollouts, therefore spurring a faster adoption within the business segment. It adds that these organizations are “perfect test subjects” for rolling out the technology to enhance productivity in task-specific roles, as those are the ones where on-device AI has the most immediate utility.

When it comes to how the work will change, the firm expects the needs of modern work will drive the adoption of AI-driven features that include audio and video optimization, smarter collaboration and advanced AI for content generation, among others. From this starting point, Canalys believes the AI capabilities in PCs will proliferate. It anticipates a marketplace with AI tools and fine-tuned LLMs as well as operating systems that are defined chiefly by deep and effective AI integration.

In this fluid environment, channel partners will be critical in spreading the word about the merits of AI-capable PCs. The industry is already fairly bullish -- a Canalys survey from May 2023 found that 41 percent of channel partners are "very optimistic" about AI's opportunities, reflecting the general enthusiasm for the technology.

What challenges might AI-capable PCs face during initial adoption?

Initial challenges include cost sensitivity and price barriers. These high-end devices, requiring potent components for local AI workloads, may encounter resistance. Additionally, the cost structure of AI-driven applications poses hurdles amid restrained IT spending.

How does Canalys envision the future of AI-enabled PC adoption?

Canalys foresees a surge in AI applications optimized for on-device processing and a shift in existing cloud-based AI apps toward a hybrid model. The integration of AI into devices is expected to reduce costs, expanding accessibility to a broader user base.

What time-saving impacts are expected from AI-enabled PCs?

AI-enabled PCs are anticipated to save time through real-time transcription, translation, and comprehensive meeting summaries. The integration of a digital twin assisting in daily tasks is set to transform the dynamics of work