Historically, the AI PC was touted as poised to change the landscape of personal computing.Amid the hype, chip manufacturers such as Intel and ecosystem participants such as Microsoft have marketed “AI-powered laptops” as the next great leap forward, with greater expectations than ever for this product category. Dedicated NPUs (Neural Processing Units), built-in co-pilots, and real-time AI assistance are intended to enable faster, more efficient workflows on smart devices.
However, only months into the mass-market roll-out of these products, a different signal is being sent. The return rates of AI laptops appear to be creeping up. The reason for the increased return rates is becoming increasingly evident: the level of performance simply does not meet the high expectations placed on these devices.
What the Data Suggests: Early Warning Signs
Although there is never any public indication of official return rate statistics, there are numerous industry signals that suggest that early purchasers of AI PCs are becoming disappointed with their purchases:
- Retailer feedback indicates above-average return-inquiry volume for AI PCs.
- Researcher complaints posted on early adopter forums regarding inconsistency in performance.
- Technology reviewer articles have documented that little actual performance benefit can be realized from the new hardware.
Microsoft has positioned the Copilot+ PCs as a new category of personal computing; however, their marketing and rollout efforts are primarily focused on future capabilities rather than immediate transformation.
Intel has positioned its AI chips as enablers of next-generation workloads; however, the vast majority of AI applications still rely heavily on cloud-based computation rather than on-device computation, which limits the hardware’s advantages for end users.
Expectations vs reality – where AI laptops fall short
The biggest issue with AI laptops is that they don’t function as advertised or at all.
Expected:
- Quickly process data offline and with no lag.
- Meet the user’s productivity workflow.
- Perform at levels significantly above non-AI devices.
Reality:
- They perform the same as non-AI in day-to-day tasks.
- They still require access to an Internet/cloud connection.
- They are draining the battery faster while performing AI-related tasks.
- A limited number of applications are available to take advantage of the NPU feature.
Intel’s technical briefs state that NPUs were designed for a specific workload. Productivity outside their stated use is marginally better than if performed on a traditional CPU or GPU.
Benchmark testing supports users’ concerns that AI is not yet making computing faster.
The results of the following tests were found:
- Traditional CPUs and GPUs outperform all typical workflows
- AI only shows positive performance enhancements in laboratory conditions
- Everyday tasks, i.e., web browsing, word processing, and multiple tasks at the same time, were nearly identical across both laptop groups.
Even Microsoft’s AI PC stories have focused on application features such as Recall and Copilot, which enhance the user experience rather than the user’s computer performance.
This is important to consumers as they believe that a “new laptop” means a “new/faster laptop”. Currently, in every situation where AI has been included, it does not result in the widely accepted faster performance from the computer.
Consumer Feedback: “Not Worth the Cost of Premium”
A major indicator of whether the user will return a product is how price-sensitive they are.
AI laptops generally cost more. Users often don’t feel like they receive a similar value for what they paid, which leads to dissatisfaction.
Common comments made by users concerning their AI Laptop include:
- “Feels like a normal laptop, just has more branding.”
- “The AI features are limited and unfinished.”
- “There is no significant difference between this computer and my previous computer, so I can’t justify the cost.”
This all fits with the trend in consumer technology—More and more buyers are unwilling to pay a premium for features they don’t fully utilize.
Could the Expectation Gap Be a Marketing Issue?
One challenge with the AI Market is how AI PCs have been marketed to consumers.
They’ve been marketed as AI laptops:
- Revolutionary
- Transformational
- A New Product Category
In reality, AI laptops are:
- Transitional devices
- In the early stages
- Dependent on Ecosystem
Most Microsoft updates state that AI capabilities will be enhanced over time, so early adopters are essentially testing an incomplete work.
OEM Response – Shifting the Narrative
Laptop manufacturers (OEMs) are adapting.
1. Messaging Adjustments (Changing how you communicate)
- Less about “AI Power”: How is it a good thing?
- More about:
- Battery life
- Build/blogging/weight.
- Hybrid productivity
2. Expanding Software Partners (New Partners)
- To increase the number of real-world uses of AI, OEMs are:
- Optimizing apps for NPUs
- Expanding their software that’s native to AI
3. Pricing Strategies (New Approach)
- Heading into Q1 of 2023, expect:
- Discounts on the first AI PCs
- Building services (AI subscriptions/Cloud-based tools)
Market Impact: Confidence Drops
The return trend is still emerging; however, it has much larger impacts:
1. Slower AI PC acceptance
The general market (Mainstream PC buyers) will likely wait until the market matures before making purchases.
2. More Consumer Research
Consumers are becoming much more educated, have researched comparables and benchmarks, and have demanded validation of manufacturers’ claims.
3. Increased competitive pressure
Will brands be forced to demonstrate?
Real-life performance improvements
Real-world examples of how AI is being used
Everyday value from their products
Conclusion: A Category Still Finding Its Footing
AI laptops are not failing but they are arriving too early for their own hype.
The current wave represents:
- Strong hardware potential
- Weak real-world activation
- High consumer expectations
Until:
- AI apps become mainstream
- Offline capabilities improve
- Performance gains become obvious
Source: Follow Intel Newsroom
