IDC: 80% of companies plan to buy AI PCs this year

AI PCs could solve key issues organizations face when using cloud and data center AI instances, including cost, security, and privacy concerns, according to a new study by IDC Research.

Nearly all organizations are already using or planning to use cloud-based AI platforms. At the same time, many of those projects have been stunted for various reasons, according to the according to the study, which was sponsored AMD.

The percentage of AI PCs in use is expected to grow from just 5% in 2023 to 94% by 2028, IDC said. The research firm surveyed 670 IT decision-makers from large companies in the US, UK, France, Germany, and Japan to explore their views on AI PCs. The November survey found that 97% of respondents plan to deploy AI to more employees in the future.

“This reflects a broader trend toward democratizing AI capabilities, ensuring that teams across functions and levels can benefit from its transformative potential,” Tom Mainelli, IDC’s group vice president for device and consumer research, said in the report. “As AI tools become more accessible and tailored to specific job functions, they will further enhance productivity, collaboration, and innovation across industries.”

The report builds off the AMD 2023 Commercial Survey and shows that IT decision-makers remain bullish on AI’s benefits for their organizations, even as they face key challenges impacting wide-spread adoption.  

When looking at the IDC report compared to the AMD 2023 Commercial Survey, the new data found that:  

Security risks (32%) remain a top barrier for decision makers adopting cloud-based AI tools and platforms, down from 67% two years ago. 

IT decision makers are more optimistic about AI PCs boosting productivity (76%) than AI in general; 67% felt that way in 2023. 

Most of those surveyed (82%) see AI PCs as a positive for employees and expect to invest in new hardware before the end of the year

Cost has been a major drag on AI projects. For smaller organizations, rolling out a single in-house instance of generative AI (genAI) can cost from $50,000 to $500,000. For larger enterprises, the costs quickly soar into the millions of dollars. At the same time, using a cloud provider brings privacy and security risks, as organizations have to rely on third-party providers.

By 2030, companies are expected to spend $42 billion a year on genAI projects such as chatbots, research, marketing, and summarization tools. And while the technology has been heralded as a boon to productivity, nailing down a return on investment (ROI) in genAI is elusive.

Because of those ROI challenges, nearly one-in-three genAI projects will be scrapped, according to research.

IDC

Seventy-four percent of those surveyed by IDC expect AI PCs to improve total cost of ownership, as they will natively offer the technology’s efficiencies. Companies are also confident they’ll also soon measure the benefits of AI PC deployment, with 87% saying they’re ready to track ROI — and over half are willing to pay a 10% premium for PCs with NPUs offering more than 40 tera operations per second (TOPS).

AI PCs are modern systems with specialized NPUs that accelerate AI processing at the edge, combining powerful CPUs and GPUs for low latency, enhanced privacy, and reduced cloud costs. Though still emerging, the category is quickly gaining traction across various price points. Microsoft and partners market the higher-end systems as Copilot+ PCs, featuring AI-driven OS tools such as live captions, improved search, and Windows Studio Effects.

Organizations are turning to genAI tools on endpoint devices because security remains a top concern for IT leaders.

The top three features of AI PCs that survey respondents found most compelling are personalized employee experiences (77%), improved data privacy (75%), and enhanced security risk prevention (74%).

IDC

AI PCs address privacy and compliance challenges by running AI workloads locally, reducing the need for cloud connectivity and lowering the risk of data breaches. In sectors such as finance and healthcare, they process sensitive data on-site, ensuring compliance with regulations like HIPAA.

As independent software vendors (ISVs) integrate local AI features and companies upgrade to Windows 11, AI PCs are becoming more common, with 60% of companies planning to replace Windows 10 systems and 73% speeding up PC refresh plans.

AI PCs can also streamline IT troubleshooting, boost security, and automate tasks. In marketing, for example, they handle data-driven campaigns and optimize engagement. In operations, they predict demand and adjust inventory for better efficiency, according to IDC.

For more than year, smaller, more adept genAI models have been migrating to endpoint devices such as smartphones, laptops, and IoT hardware. Notably, Apple, Samsung, and other smartphone and silicone manufacturers have been rolling out AI capabilities on their hardware, fundamentally changing the way users interact with edge devices.

Thought AI PCs can boost productivity, organizations should collaborate with hardware and silicon vendors to understand how the technology aligns with business goals. “This helps identify AI PC solutions that address specific challenges and deliver value,” IDC said.

There are two key opportunities, the research firm said. First, companies should engage with ISVs to stay informed about AI-driven software features, enabling strategic AI PC deployments. Second, working with hardware partners to understand roadmaps helps optimize deployment across datacenters and edge environments, balancing performance, cost, and scalability, IDC said.

“By aligning strategies with technology roadmaps, businesses can unlock AI PCs’ full potential and ensure long-term success,” IDC said.