Is India ready to adopt AI PC ?

S Mohini Ratna, Editor, VARINDIA

Industry experts anticipate a significant increase in demand for AI-enabled PCs in India starting in 2025. This growth is expected to be driven by original equipment manufacturers (OEMs) launching new AI-powered devices and upgrading existing models. 

As the Indian market shows signs of recovery, this surge will be propelled by a fresh replacement cycle and increased adoption by enterprise users, startups, and IT organizations.

As AI technologies become more advanced and accessible, businesses and individuals are increasingly integrating AI into their daily operations. AI-enabled devices enhance productivity through features like intelligent task automation, advanced data analysis, and personalized user experiences.

Clear and practical use-cases for AI in industries such as healthcare, education, finance, and manufacturing are driving the adoption of AI hardware. Today, Enterprises are leveraging AI to optimize processes, improve decision-making, and deliver better customer experiences.

AI PC is a supercharged personal computer, customized with the right hardware and software to handle AI and machine learning tasks like a pro. It is designed to deliver enhanced computational power and energy efficiency with a more secure environment to handle the massive workloads previously done through Cloud services. 

AI PCs often include powerful Graphics Processing Units (GPUs) from companies like NVIDIA or AMD. GPUs are essential for parallel processing, which is critical for training and running AI models. Some AI PCs may feature Tensor Processing Units (TPUs) or Neural Processing Units (NPUs), which are specifically designed for AI computations.

AI PCs offer significantly more processing power through GPUs and specialized AI chips, enabling faster and more efficient training and inference of AI models. The architecture of AI PCs is optimized for parallel processing, making them much more efficient for tasks that require simultaneous computations.

Intel and AMD, two major players in the PC hardware market, provide more inclusive and generalized definitions for what constitutes an AI PC, focusing on the presence and functionality of key hardware components rather than specific features like Microsoft's Copilot key. These definitions emphasize the integration of CPUs, GPUs, and NPUs, each equipped with AI acceleration capabilities.

The trend toward incorporating CPUs, GPUs, and NPUs with specific AI acceleration capabilities in laptops marks a significant shift in the personal computing industry. 

Today, major laptop manufacturers like Dell, HP, Lenovo, Asus, Acer, Samsung, and Microsoft are actively integrating advanced processors from Intel, AMD, and Qualcomm into their models. This inclusion reflects the growing demand for AI-enhanced computing in consumer and business environments.

At the same time, Apple is also introducing its advanced AI suite, dubbed "Apple Intelligence," into Mac laptops and desktops, along with its integration into macOS Sequoia (as well as iPadOS 18 and iOS 18), represents a significant stride in embedding AI capabilities directly into the operating system. 

As per Canalys, an estimated 48 million AI-capable PCs will ship worldwide in 2024, representing 18 per cent of total PC shipments. This is just the start of a major market transition, with AI-capable PC shipments projected to surpass 100 million in 2025, 40 per cent of all PC shipments. 

In this context, the Indian PC market has registered a growth as it shipped 3.07 million units in Q1 2024, up 2.6 per cent year-over-year (yoy), noted International Data Corporation (IDC).

Indeed, the Indian market presents unique challenges and opportunities when it comes to AI adoption, particularly in the realm of AI-powered PCs and laptops. The relatively high cost of AI laptops in the initial wave means that early adoption might be slower in India compared to other countries.

Indian consumers and businesses are often more price-sensitive, which could dampen immediate replacement demand. For many Indian consumers, the perceived benefits of AI in laptops need to be clearly demonstrated to justify the higher cost. This includes enhanced productivity, improved user experience, and long-term cost savings.

While the initial wave of AI laptops may not trigger immediate large-scale replacement demand in India, the market holds significant potential for growth. As prices decrease and the benefits of AI become more apparent, the penetration of AI laptops is likely to increase, potentially boosting ASPs and driving broader market adoption after 2025. 

As per our survey, we anticipate a strong demand for AI PCs in India, driven by the need for advanced computing capabilities and the growing adoption of AI technologies across industries. 

As the Indian market shows signs of recovery, this surge will be driven by a fresh replacement cycle and increased adoption by enterprise users, startups, and IT organizations.