AI Goes Mainstream as ‘AI PCs’ Hit the Market 

John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)
John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)
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AI Goes Mainstream as ‘AI PCs’ Hit the Market 

John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)
John A., Microsoft Marketing Manager, builds a Microsoft Copilot+ display at the Best Buy store on June 18, 2024 in Miami, Florida. (Getty Images/AFP)

A new line of PCs specially made to run artificial intelligence programs hit stores on Tuesday as tech companies push toward wider adoption of ChatGPT-style AI.

Microsoft in May announced the new AI-powered personal computers, or "AI PCs," which will use the company's software under the Copilot Plus brand.

The idea is to allow users to access AI capabilities on their devices without relying on the cloud, which requires more energy, takes more time, and makes the AI experience clunkier.

The PCs feature a neural processing unit (NPU) chip that helps deliver crisper photo editing, live transcription, translation, and "Recall" -- a capability for the computer to keep track of everything being done on the device.

However, Microsoft removed Recall last minute over privacy concerns and said it would only make it available as a test feature.

For now, the devices built by hardware makers like HP and ASUS run exclusively on a new line of processors called Snapdragon X Elite and Plus, built by the California-based chip giant Qualcomm.

"We are redefining what a laptop actually does for the end user," Qualcomm's senior vice president Durga Malladi told AFP at the Collision tech conference in Toronto.

"We believe this is the rebirth of the PC."

At the May launch, Microsoft predicted over 50 million AI PCs would be sold in 12 months, given the appetite for ChatGPT's powers.

Such a result would give a much needed boost to PC sales, which declined for two years from the halcyon days of the coronavirus pandemic before returning to growth in the first quarter of 2024.

Best Buy, the US retail giant, said it had trained tens of thousands of staff to sell and maintain the new line of AI PCs.

Some industry experts are more hesitant about their promise, predicting the actual benefit of upgrading to an AI laptop isn't compelling enough yet and will need more time.

"AI's evolutionary features aren't revolutionary enough to disrupt traditional buying patterns," said analysts from Forrester.

"For most information workers, there aren't enough game-changing applications for day-to-day work to drive rapid AI PC adoption."

Microsoft has aggressively pushed out generative AI products since ChatGPT's release in late 2022, with new AI features available across products including Teams, Outlook and Windows.

Feeling the pressure, Google quickly followed suit while Apple entered the game earlier this month, announcing its own on-device AI capabilities rolling out to premium iPhones in the coming months and year.

The latest MacBooks and iPads already have the capability to run high-performing AI features, but Apple has been slower to highlight those powers.

"I guess we missed the boat to name it an AI PC," Craig Federighi, Apple's senior vice president of Software Engineering, joked recently about the latest generation of MacBook.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.