Surging demand for artificial intelligence-enabled devices could pose a major challenge for procurement teams in the second half of 2024. According to a new report by Probrand, the launch of the next generation of AI computers is one of several factors likely to trigger higher than typical levels of sales.
IT device demand surges
Probrand identified several contributing factors that could make it more difficult for procurement teams to secure the IT equipment they need. These include replacement purchases due to the loss of support for Windows 10 products in October 2025; periodic product refreshes to replace emergency purchases made during the Covid-19 pandemic; the heavy discounting on old market stock by vendors wanting to clear a path for new stock; and an increased supply of AI-powered devices, including Microsoft’s Copilot+.
Ian Nethercot, supply chain director at Probrand, commented: “As more AI-powered devices enter the market there is going to be a surge in supply, which will create increased competition between vendors, who will be under pressure to shift their existing stock. In the last week alone, we’ve seen additional discounts of between 5 and 10% in certain categories, including laptops.”
He added: “The supply chain is also showing more signs of improved stability, which is building confidence in the market. It’s encouraging vendors to be more transparent with buyers over what deals are available, and offer more flexibility in the way they can purchase stock. For example, many vendors are now giving organisations the option to ringfence and reserve products in advance. This means IT buyers can be more strategic. They can seize the deals available to them now and acquire stock for future deployment.’’
Probrand advises that, as the market transitions to the next-generation of PC, there will be a short window of opportunity that will allow buyers to stretch their IT budgets further – if they can be strategic in their purchasing behaviour.
The AI computer era
Microsoft, along with other computer manufacturers, has spent the past year pushing the introduction of new computer hardware that’s compatible with running AI applications, like Copilot, locally. The idea is that, rather than rely on the internet and massive, power-intensive data centres to execute generative AI commands, local AI-enabled PCs will be able to execute more AI commands within the laptop itself.
According to data gathered by Canalys, electronics manufacturers shipped 8.8 million AI-capable PCs in Q2 of 2024. Defined as desktops and notebooks that include a chipset or block for dedicated AI workloads, such as an NPU, these devices made up around 14% of all PCs shipped in the quarter. Canalys’ research expects that figure to rise to 18% of all shipments for the whole of 2024. With all major processor vendors’ AI-capable PC roadmaps now well underway, Canalys notes that the stage is set for a significant ramp-up in device availability and end-user adoption in the second half of 2024 and beyond, in line with Probrand’s predictions.
“The wider availability of AI-accelerating silicon in personal computing will be transformative, leading to over 150 million AI-capable PCs shipping through to the end of 2025,” said Ishan Dutt, Principal Analyst at Canalys.
However, the integration of AI hardware into personal computers (or any devices, for that matter) has not been seamless. Delays, obsolete devices under a year old, and doubts cast over the functionality of AI-powered applications like Copilot have all raised questions over whether massive spending on generative AI is justified yet — or even whether it ever will be.
“Rose-tinted predictions for artificial intelligence’s grand achievements will be swept aside by underwhelming performance and dangerous results,” Darren Acemoglu warned in a recent article for WIRED.
