Two years after proclaiming the “age of the AI PC,” Intel now acknowledges a significant disconnect between industry excitement and consumer interest. At CES earlier this month, the chip giant shifted its focus from on-device AI capabilities to fundamental concerns like performance and battery life.
This pivot marks a notable change from CES 2024, where Intel championed its Core Ultra processors as ushering in a new era of personal computing. Michelle Johnston Holthaus, then CEO of products, declared AI would “fundamentally transform, reshaping, and reimagining the PC experience” according to a Fast Company report from January 2026.
Jim Johnson, head of Intel’s Client Computing Group, emphasized at a recent launch event that “fundamentals still matter” amidst the AI buzz. This sentiment reflects a growing realization that cutting-edge AI features alone are not yet driving consumer purchasing decisions for new computers.
The shifting narrative of on-device AI
David Feng, VP/GM for Intel’s PC client segments, confirmed this intentional change in emphasis, noting that consumers haven’t been particularly interested in AI PCs. He highlighted a “disconnect between people in the industry who are looking a couple generations or a couple years ahead, versus the general public.”
Initially, the vision for AI PCs included robust on-device processing for tasks like real-time language translation, advanced image editing, and enhanced video conferencing without relying heavily on cloud services. While these capabilities are technically feasible, their immediate value proposition has not resonated broadly with the average user.
Industry analysts, such as those from IDC, have consistently pointed to factors like price, battery life, and overall performance as primary drivers for PC upgrades. AI capabilities, while promising, often rank lower on consumer priority lists compared to tangible improvements in daily usage, as detailed in IDC’s PC market insights.
Instead, Intel now positions its PC processors in a more supportive role for cloud-based AI tools. This strategy acknowledges that many users are already interacting with AI through web services and applications, and their PCs need to be fast and efficient rather than necessarily running complex AI models locally.
What consumers truly seek in a new PC
The market reality suggests that consumers are more interested in tangible benefits that directly impact their daily workflow and entertainment. A longer battery life for remote work, faster application loading times, and a reliable, powerful system for multitasking remain paramount.
According to a recent report by Statista on consumer electronics trends, the demand for devices that offer seamless integration with existing ecosystems and robust security features often outweighs the desire for novel, yet unproven, AI functionalities. Users value practical enhancements over speculative future applications.
Manufacturers, therefore, are recalibrating their marketing and development efforts. The focus is shifting back to core competencies: delivering powerful, efficient, and user-friendly devices. AI will likely evolve as a background enabler, enhancing existing features subtly rather than being a standalone selling point.
This recalibration by Intel underscores a crucial lesson for the tech industry: innovation must align with genuine consumer needs and perceived value. While AI’s potential is vast, its integration into personal computing must offer clear, immediate benefits that justify the investment for the average user.
Looking ahead, the evolution of AI PCs will likely be more gradual, with AI capabilities becoming an integrated part of overall system performance rather than a distinct feature. The industry will continue to explore how to make on-device AI indispensable, but the immediate future remains anchored in fundamental user experience.
