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Impact of AI laptops on replacement demand in India: First wave expectations.

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In Short:

Experts believe that India may not see a strong demand for expensive AI personal computers (PCs) right away. The demand for AI laptops and notebooks is expected to increase in 2025 once their use-cases are established. Companies are discussing the integration of AI in workflows, but consumers are not showing much interest yet. Market trackers predict that AI laptop and desktop adoption will pick up after 2025 due to lower prices and increased demand.

AI PCs Adoption in India Expected to Increase by 2025

In New Delhi, industry experts are stating that the first wave of expensive artificial intelligence personal computers (AI PCs) will not immediately generate a strong replacement demand in India, unlike in other countries. Despite the introduction of next-generation machines by IT hardware manufacturers, the demand for AI laptops and notebooks, which come at a premium price compared to regular PCs, is predicted to rise only after the establishment of their use-cases and wider adoption, likely around 2025.

Industry Perspective

Company executives have started discussions on integrating AI into their operations, balancing the potential benefits in productivity and efficiency with the associated costs of developing specific AI models. In many cases, CEOs are enthusiastic about embracing AI technology, while CIOs and CFOs prefer to start with small-scale pilots to assess its impact.

AMD, a semiconductor maker, is currently exploring proof-of-concepts for integrating high-performance computing servers in various enterprises. However, the average consumer demand for AI-capable devices remains low at present.

Market Outlook

Green Lin from PC maker MSI anticipates that consumer interest in AI laptops and desktops will start picking up by 2025 as use-cases become clearer and AI adoption increases. Performance is expected to be a key factor influencing the purchase of AI PCs, especially among 18-25-year-olds.

According to research analysts, the high prices of AI PCs may initially limit replacement demand in India. However, as demand grows and prices decrease, there could be a significant increase in AI laptop penetration after 2025, especially driven by enterprise users and startups.

For vendors, AI PCs represent a major feature upgrade, but the challenge lies in identifying specific use cases that justify the additional cost. As enterprises understand the potential applications of AI, the momentum for AI PC adoption is projected to pick up in the coming years.

Overall, it is estimated that around 15% of total expenditures on new machines will be allocated to AI PCs once adoption gains traction.

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