China is making bold strides towards becoming a global leader in artificial intelligence (AI) personal computing.
Despite a recent dip in PC sales, the country is ramping up its efforts to capture a significant share of the AI-powered PC market, with plans for substantial growth by 2025.
China’s Ambition to Dominate the AI PC Market
According to a recent report by Canalys, the Chinese PC market witnessed a 6% decline in year-on-year shipments in the second quarter of 2024. However, the future looks promising as China prepares to boost its AI PC production.
The report predicts that China will experience a 12% increase in PC sales by 2025, which is notably higher than the meager 1% growth expected in the tablet market.
This surge is driven by China’s commitment to expanding its AI capabilities. The nation has set an ambitious goal to increase its computing power by 30% before 2025 to support the widespread adoption of emerging technologies like generative AI.
This focus on AI has given China a competitive edge in the global PC market, as the country works towards becoming a major player in the next generation of computing.
Strong AI Engagement in China vs. Western Markets
One of the key differentiators between China and many Western nations is the level of AI engagement in everyday workflows.
According to Canalys Analyst Emma Xu, AI integration in mainland China is significantly more advanced than in regions like the United States and the UK.
While AI regulations in Western countries have limited the adoption of certain AI tools, such as Microsoft’s Copilot, China has seized this opportunity to strengthen its domestic AI ecosystem.
“This has led to localized strategies for developing AI PCs in China,” Xu explained. “Many Chinese vendors are now integrating in-house AI assistants into their devices or collaborating with developers to build their own AI application ecosystems.”
Currently, nearly half (47%) of Chinese enterprises have a well-defined AI strategy in place, a stark contrast to the 21% of companies in the US and UK.
This proactive approach is accelerating the integration of AI into business operations, particularly in sectors that require enhanced computing power and data processing.
AI PCs: A Growing Market with a Business Focus
While AI-powered PCs offer significant productivity benefits to all users, they are especially advantageous for businesses dealing with heavy workloads and complex tasks.
AI-enhanced PCs are designed to deliver superior processing power, enabling companies to handle demanding applications more efficiently.
Although AI PCs currently make up just 13% of the total PC market, this number is expected to nearly triple to 37% by 2025.
By 2027, Canalys estimates that AI PCs will account for 62% of new PC shipments, reflecting the growing demand for AI-powered devices in the business sector.
The Path Forward for AI PC Vendors
To succeed in this rapidly evolving market, PC manufacturers must focus on expanding their reach and differentiating their products from competitors.
According to Xu, “Vendors need to enhance user experiences and outcomes by leveraging on-device AI models.” This strategy will not only improve productivity for businesses but also position China as a leader in the global AI race.
