Channel partners react to predicted AI PC growth in 2024

CRN speaks to SCC UK and CAE Technologies to find out how resellers are preparing themselves for the rise of AI PCs

Gartner and IDC have both predicted an increase in the shipment and adoption of AI PCs over the course of 2024 and onwards.

Shipments of AI PCs are expected to grow from nearly 50 million units in 2024 to more than 167 million in 2027.

The analyst organisation also said it expects AI PCs to represent nearly 60 per cent of all PC shipments worldwide.

Global shipments of PCs already saw a minor uptick of 0.3 per cent in Q4 2023, bring the total to 63.3m units, marking the first increase after eight straight quarters of decline, according to Gartner.

But now the analyst firm is projecting a major shift in global shipments of AI PCs and genAI smartphones which are said to total 295m units by the end of 2024 - representing 22 per cent of all PCs in 2024.

As the channel prepares itself for this new wave of hardware, we asked two resellers how they are handling the rise of AI, what their predictions are and how the channel will benefit from the expansion of the technology.

Will Carver, general manager workplace, SCC UK:

"There's no question that AI has become more mainstream over the past 18 months - first we saw ChatGTP enter the public consciousness in a big way, and now we're seeing Microsoft' Copilot on every personal device and a good number of work devices too.

"The advent of the AI-enabled PC, indeed other devices like the new Samsung phones, is going to make access to these services ubiquitous, and there are significant productivity gains to be had, if it's done right, but also significant risks if projects aren't run properly.

"SCC has been involved in the AI world for some time now, with strategic partnerships with UK Universities, investments here in the UK and abroad, and a framework for AI adoption for customers.

"The device itself is just one part of the equation - getting the data ready, creating an appropriate security posture, having a platform strategy capable of dealing with large amounts of data at low cost, engaging the right ISVs and understanding user experience are all key to unlocking the value of AI for business.

"We think that demand for AI-enabled PCs will be dependent on the penetration of services like Copilot, and while in time we expect costs to fall, short term AI-devices will probably look expensive compared to traditional devices.

"Add to that the cost of Copilot licences at about $30 per user per month, there are barriers to entry which will need to be overcome - customers will need to convince the CFO it's worth doing!

"SCC has developed tooling to help provide proper metrics for Copilot, and other AI tooling, check usage and be able to report on it and we think that digital experience is critical to adoption of AI services, and thus AI devices.

"Therefore, we expect demand to start fairly modestly in the second half of 2024 and to grow steadily over the following 18 months.

"Businesses will need help from organisations like SCC to shape their AI strategy first, they will need to consider their data readiness and security postures, and then they'll be ready to adopt these devices at scale.

"Customers will also need help from organisations like SCC to understand what "good" looks like in this world; we think that there are major productivity benefits to be had for workers at all levels, but customers need help identifying potential use cases, and measuring the results.

"Critical to that is device performance and outcomes - with benefits like security important but not the driver for change on their own."

Richard Behan, chief corporate development officer, CAE Technologies:

"The future importance of AI is in no doubt. Only this week did I hear comments around AI being not only more disruptive than the internet, but even electricity!

"CAE are focused on not only preparing our employees and informing our customers about this huge change, but to also make sure that we are protected against it.

"In the near term, I would anticipate AI PCs to be the driving force and ultimately dominate the market.

"Although next-generation AI PCs will offer even greater performance, there is still uncertainty in the timings around when the supply chain will have such advanced capabilities.

"With improved levels of performance for AI workloads being the obvious benefit for our customers, security will also resonate - having robust security and data governance policies are a must!

"In offering supportive activities like customer workshops and data classification services, we can help our customers on their AI journey."