The personal computer industry is undergoing its most dramatic transformation since the smartphone era, with artificial intelligence-powered PCs set to capture nearly one-third of global shipments by the end of 2025
The market intelligence firm projects AI-enabled PCs will reach 77.8 million units this year—representing 31% of worldwide PC sales—before surging to 143 million units in 2026, when they’ll command a dominant 55% market share.
AI-enabled PCs, or AI PCs, represent a new generation of computers built with specialised hardware, including a Neural Processing Unit (NPU) alongside traditional CPUs and GPUs, to run artificial intelligence tasks directly on the device.
They deliver greater productivity, creativity and user experience through features such as intelligent automation, personalised workflows, real-time translation and advanced AI assistants like Microsoft Copilot.
By shifting AI workloads from the cloud to the machine itself, these PCs offer faster performance, improved responsiveness and stronger privacy and security than conventional models.
Laptops Lead the Charge
The AI adoption wave is hitting mobile computing hardest, with AI-equipped laptops expected to claim 35.7% of the total laptop market in 2025, significantly outpacing AI desktop PCs at just 16.4% of their segment.
“By 2029, AI PCs will become the new standard,” Gartner predicts, marking a complete shift in how consumers and businesses approach personal computing.
Market Headwinds Slow Early Adoption
Despite the technology’s promise, AI PC adoption faces near-term challenges that could temper growth expectations. Trade tensions and economic uncertainty are forcing businesses and consumers to hit the pause button on major tech purchases.
“AI PCs are reshaping the market, but their adoption in 2025 is slowing because of tariffs and pauses in PC buying caused by market uncertainty,” said Ranjit Atwal, Senior Director Analyst at Gartner. “Nevertheless, users will invest in AI PCs to ensure they are prepared for the growing integration of AI at the edge.”
Battle of the Chips: ARM vs. x86
A fascinating divide is emerging between business and consumer preferences for AI PC processors.
While enterprise buyers remain loyal to traditional x86-based Windows laptops—expected to hold 71% of the business AI laptop market in 2025—consumers are increasingly gravitating toward ARM-based systems as compatibility issues resolve.
ARM-based laptops are projected to capture 24% of the business market, but industry watchers expect this figure to climb rapidly as software optimisation improves.
Software Gold Rush Begins
The AI PC boom is triggering a massive realignment in software development priorities. Gartner forecasts that by late 2026, a staggering 40% of software vendors will pivot their investment strategies to focus on AI capabilities that run directly on PCs—a dramatic spike from just 2% in 2024.
Central to this shift are Small Language Models (SLMs) that operate locally on devices rather than in the cloud. These compact AI engines offer compelling advantages: lightning-fast response times, reduced power consumption, and enhanced data security by keeping sensitive information on-device.
“While no SLMs were running on devices in 2023, by 2026 multiple such models will be available on PCs,” Gartner reports, highlighting the breakneck speed of AI integration.
The Customisation Imperative
Hardware manufacturers are being forced to rethink their entire approach as AI transforms PCs from commodity products into highly personalised platforms.
“The future of AI PCs is in customisation,”Atwal said, “It lets users configure their devices with the apps, features and functions they want. The more users interact with a vendor’s AI PC, the better the vendor understands them, allowing for ongoing improvements and stronger brand loyalty.”
This shift demands that PC makers move beyond traditional hardware-focused development toward software-defined platforms tailored for specific industries and professional roles.
Industry Transformation Accelerates
The data paints a picture of an industry in rapid transition, with AI capabilities becoming the new battleground for PC manufacturers. As processing power shifts from distant data centers to the devices in users’ hands, the personal computer is poised to reclaim its position at the center of the digital experience.
For businesses and consumers alike, the message is clear: the age of AI-powered personal computing has arrived, and those who adapt quickly will define the next chapter of the technology industry.
