Indian consumers are showing a cautious approach to adopting AI PCs, despite the global push towards these advanced machines. While AI is transforming various sectors in India, including shopping trends, the enthusiasm for AI-integrated personal computers is tempered by concerns over cost and practical applications.

Hesitation in the Indian Market

The demand for AI PCs, which are equipped with hardware to handle artificial intelligence tasks, is cooling down faster than anticipated, not just globally but also in India. Gartner has revised its 2026 forecast, projecting AI PCs to constitute 49% of total PC shipments, a decrease from the earlier estimate of 55% in late 2025. This adjustment reflects a reluctance among buyers to spend more on features that don't yet present a clear and compelling value.

Why the Slow Uptake?

Several factors contribute to the tepid consumer response:

• Price Sensitivity: AI PCs typically cost 20-40% more than standard models. Many potential buyers are unconvinced that the on-device AI capabilities justify the higher price tag.
• Lack of Compelling Software: A key deterrent is the absence of "mature, must-have use cases for on-device AI". Consumers are waiting for software applications that can fully leverage the potential of AI PCs.
• Hardware Constraints: Memory shortages, particularly DRAM, are impeding the transition to AI PCs. The scarcity and rising prices of RAM add to the overall cost, further discouraging adoption.
• Component Supply: The manufacturing of AI PCs in India relies heavily on imports for critical components like processors and memory. This dependence makes local production vulnerable to global supply and demand fluctuations.

Acknowledging the Consumer Sentiment

Even major players like Dell have recognized the subdued consumer excitement surrounding AI PCs. This realization has prompted a renewed focus on consumer and gaming-centric features in their product strategies.

Potential Benefits and Optimistic Outlook

Despite the current slowdown, AI PCs offer several advantages:

• Enhanced Productivity: AI PCs can automate routine tasks,enabling users to focus on creative and analytical work.
• Improved Performance: Features like AI-assisted performance tuning ensure smooth operation during demanding tasks.
• Better Security: On-device AI processing reduces the need for cloud-based data transfer, enhancing privacy and security.
• Creative Empowerment: AI PCs provide tools that enhance artistic expression and streamline creative workflows.

Some analysts anticipate improved demand by late 2026 as more practical applications for AI PCs emerge. HP remains optimistic, with expectations that AI PCs will constitute over 50% of PC shipments within a few years.

The Path Forward

To stimulate demand, efforts are needed in several key areas:

• Consumer Education: Educating consumers about the tangible benefits and use cases of AI PCs is crucial.
• Localized AI Applications: Developing AI applications tailored to the Indian market can demonstrate the value of these devices.
• Cost Optimization: As production volumes increase and the ecosystem matures, prices are expected to decrease, driving broader adoption.
• Government Initiatives: The Indian government is investing in AI infrastructure and offering subsidies to encourage AI adoption.

While Indian consumers are currently hesitant to embrace AI PCs, the long-term potential remains significant. As AI technology evolves and more compelling use cases emerge, AI PCs are expected to become increasingly relevant and desirable in the Indian market.