This story belongs to the Fortune India Magazine April 2025 issue.
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ARTIFICIAL INTELLIGENCE. Love it or hate it, you cannot live without it. For the past few years, our interactions with AI have largely been confined to smartphones and cloud-based services. But what about the PC, the original workhorse of productivity and creativity? While cloud-based services are available on them, till recently, they did not come with any on-device AI capabilities like the latest flagship phones. However, with a renewed push from chipmakers like Qualcomm and AMD, the “AI PC” is finally here.
While AI PCs are late to the party, the question is: Will on-device AI in PCs be a game changer, or is it simply a marketing buzzword?
Qualcomm, with its Snapdragon X Elite, and AMD, with its Ryzen AI processors, are aggressively promoting the capabilities of their chips to handle AI workloads directly on the device rather than relying solely on cloud-based processing. This “on-device” approach offers several potential advantages, such as lower latency, enhanced privacy, offline functionality, and improved power efficiency, making it ideal for real-time apps, security, and mobile use. Taiwanese chip design giant MediaTek is not far behind. Reports suggest that it is developing an ARM-based PC chip — set to launch late next year — that will power Microsoft’s AI laptops.
This on-device or hybrid AI focus is a strategic move. For years, chipmakers, especially in the PC space dominated by Intel and AMD, focussed on raw processing power. The rise of mobile computing, where power efficiency is key, and the success of ARM-based chips (like those from Qualcomm and Apple’s custom silicon) prompted a rethink. AI provides a new battleground.
The success of the AI PC hinges not just on the chips but also on the OEMs who design and build the devices for the end consumer. Companies such as Lenovo, Microsoft, and HP are actively embracing the AI PC trend, partnering with various chipmakers to offer a range of options. Lenovo, for instance, is working with Intel, AMD, and Qualcomm, integrating their AI-enabled processors into lines like the ThinkPad and the newly announced “Aura” series, which is heavily AI-focussed. HP is also making a strong push with devices like the OmniBook, showcasing the potential of on-device AI for productivity and creativity. Microsoft is relying on Copilot+ PCs like the Microsoft Surface. It is what these companies do in terms of strategy, branding, and marketing that will truly determine consumer adoption. These OEMs have a tough task: figuring out what kind of AI features, design, battery life, and pricing will entice customers.
Why did it take so long for the AI PC to become a mainstream focus for these companies? It could be that the initial wave of AI innovation was focussed on smartphones or the original assumption that heavy-duty AI tasks would be best handled in the cloud. It also perhaps needed a push from the likes of Qualcomm and Apple, who needed to get it right with the chip architecture.
While cloud-based AI will continue to play a vital role, the ability to perform sophisticated AI tasks locally opens up new possibilities. “Features such as live transcription and AI-driven creativity tools are gaining traction and improving workflows,” says Prabhu Ram, VP-Industry Research Group, CyberMedia Research. The rapid advancement of AI hardware has outpaced software development, he adds.
Will developers create useful apps that showcase the advantages of on-device AI? Will the user experience be significantly enhanced? The answers will determine whether the AI PC becomes a truly transformative technology or just another feature on a spec sheet.
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