Why AI’s leap calls for new gear

How AI-driven hardware is redefining the future of work — and why you can’t afford to sit on the sidelines

While many of today’s headlines focus on data center booms and software innovations — like next-gen language models and AI add-ons for everyday apps — one essential piece has been overlooked: hardware. That’s starting to change thanks to lower-compute models like Phi-3-mini and GPT o1-mini that are changing the paradigm for where AI compute happens. At the same time, the spread of hybrid AI-human teams is changing the paradigm for the nature of work itself, how we measure business performance and how we move beyond traditional means of scaling in favor of agility and innovation.

Leading enterprises are building AI-first ecosystems to navigate the landscape of modern work. Recent findings from 2024 PwC’s Cloud and AI Business Survey highlight that 63% of top-performing companies are increasing their tech budgets to take advantage of AI. As AI becomes a fixture in daily workloads, demand is growing for hardware solutions that provide the compute needed to turbocharge productivity and keep data secure. Key hardware innovations, such as AI PCs equipped with neural processing units (NPUs), offer unprecedented on-device AI capabilities that can transform how users work, as well as boost on-device compute power, reducing reliance on cloud providers. For businesses aiming to thrive amid rapid technological change and shifting global markets, leveraging an AI-driven hardware ecosystem will become table stakes to remain market leading and competitive — it’s essential.

A rapidly changing landscape demands immediate action

Though early adopters are already reaping the benefits of AI software and hardware, many companies have remained on the sidelines. That’s a mistake, and here’s why.

• As cloud computing expenses balloon, leading enterprises can look to AI PCs to drive innovation while keeping cloud costs in check: 63% of top firms plan to boost annual cloud budgets by 6% or more, outpacing inflation rates, to keep up with demand. At the same time, a projected 64 zettabyte imbalance between organizational data and data center capacity is prompting companies to reassess where compute is done. While major hyperscalers are investing heavily in expanding centralized data centers — many utilizing NVIDIA chips for high-performance computing — businesses have a significant opportunity to localize AI workloads. This is particularly relevant for data stored at the edge or data unsuitable for cloud processing due to security, compliance or latency issues. Investing in PCs equipped with NPUs can bridge this gap, enabling AI use cases while reducing dependence on centralized cloud services and associated costs.
• Increasing global attention to data sovereignty, user privacy and online safety make AI PCs a strong option for responsible innovation. Governments worldwide are tightening regulations around data transfers, storage and processing –– from the EU’s GDPR to data localization mandates in Asia and beyond, the regulatory climate is driving demand for on-device computing. NPU-equipped PCs can process sensitive or proprietary data locally, reducing risks associated with cross-border data transfers. Although commercial AI devices are currently driving the “confidential computing” trend, regulation will likely follow as the technology matures and gains wide-scale adoption. Take multifactor authentication (MFA) for example, which is now mandated by regulations for systems handling sensitive information: If and when confidential computing takes off, AI PCs may be even more valuable to enterprises.
• With widely used software nearing end-of-service, many organizations may face increased cybersecurity risks. Common operating systems such as Windows 10 and Ubuntu 20.04 LTS reach end-of-service in 2025, meaning they’ll no longer receive security updates, bug fixes or technical support. Users should upgrade their software and hardware now to mitigate security vulnerabilities, safeguard data and enable compatibility with next-generation applications.
• The workforce is increasingly expecting access to AI-powered tools that can enhance their efficiency and overall work experience. PwC’s Leadership Agenda found that over 80% of daily GenAI users are satisfied with their jobs, a stark contrast to non-users at only 60% satisfaction. These workers see AI as a catalyst for skill development, creativity and higher-quality output. Employers that lag in adopting AI tools and PCs are not only missing out on productivity gains but may face challenges in attracting and retaining talent. Access to tools like AI agents can help your organization usher in an era of augmented intelligence where your workforce combines human ingenuity with AI’s analytical powers to unlock new levels of innovation.
• Software developers are preparing to launch next-generation “killer apps” using on-device AI compute. On-device AI compute power from NPUs is being tapped for creative applications, like the Adobe Suite and Blender, as well as with remote work tools like Microsoft Teams and Zoom. These are just the beginning — software developers are increasingly harnessing NPU capabilities to unlock new levels of performance and functionality across industries.
• Traditional enterprise buying cycles last 3-5 years. Selecting the wrong device today means being behind for years to come (or spending more in the long run). For enterprise tech buyers, the total cost of ownership is a key factor. Legacy hardware incurs higher maintenance and support costs, while relying on cloud-based AI tasks adds further expenses. AI PCs with NPUs offer a cost-efficient alternative, with added benefits of data security and privacy.

These emerging global trends underscore the rapidly growing urgency for organizations to embrace AI-enabled hardware. However, realizing these benefits at scale won’t be without its challenges.

Let’s break down some common obstacles and how to help overcome them.

• Understanding which employees stand to gain the most from AI is the first part of the transition. Each role within your business can benefit from AI in unique ways. Frontline sales teams can use AI-powered “next best action” recommendations, back-office data analysts can use edge models to derive insights faster and developers can supercharge their productivity by running low-latency programming assistants directly on their devices. Even those operating in high-security or off-grid locations can benefit from on-device AI workloads, highlighting just how wide-ranging the possibilities truly are.
• Identifying compatible hardware solutions is essential. Your IT department should assess its current software stack and explore how it can integrate with innovative technologies. The evolving hardware landscape delivers next-generation performance and energy efficiency across Windows and macOS, with both x86 and ARM architectures offering new possibilities. While application compatibility may require assessment, ongoing advancements in software optimization and emulation provide options for cross-platform support. With a diverse range of devices available, your organization can select the best-fit technology to meet its needs while smoothly managing the transition.
• True opportunity goes beyond plug-and-play. While AI-enabled hardware like NPU-equipped AI PCs provide some inherent productivity and performance gains, the real value unlock will come from widespread adoption and enterprise transformation. With tech budgets on the rise, as highlighted in PwC’s 2024 Cloud and AI Business Survey, we recommend striking a balance between investing in rapidly evolving cloud technologies and establishing a stable foundation with your company’s own devices and hardware. This stability provides a reliable environment to build tools and workflows on, enabling your business to fully harness AI’s potential.

Enterprises willing to invest in modernizing infrastructure and reimagining workflows with AI can see significant improvements in productivity and efficiency, but only if they’re intentional in their approach.

For more on AI-enabled hardware, dive into the six personas that stand to gain the most from on-device AI — and how your enterprise should look to identify these personas within your business. Check it out here.