Microsoft's ambitious AI-powered PC initiative, Copilot+, is facing its first major hurdle: lackluster sales. Launched last year with high hopes of revolutionizing the way people interact with their computers, the program promised capable laptops with built-in AI capabilities that would make life easier and more efficient. But as it turns out, most consumers aren't nearly as excited about AI features as the tech giants pushing them.
The main issue is that many users aren't convinced by the limited AI features on offer. Microsoft's Recall feature, which allows you to capture a snapshot of your PC to create a database of everything you've done, was plagued by privacy concerns from the start. And while it may seem useful at first, I haven't found its ability to remember files and websites you've opened to be particularly practical.
As a result, consumers weren't willing to pay a premium for Copilot+ systems, especially during these uncertain economic times. The latest data from Mercury Research shows that Copilot+ systems accounted for less than 10% of all systems shipped in the third quarter of last year. And according to IDC, they made up just 2.3% of Windows machines sold in the first quarter this year.
So what's next for Microsoft? Instead of pushing forward with the Copilot+ initiative, the company has decided to pivot and instead aim to make every Windows 11 computer an AI PC. The new features include "Hey Copilot" voice commands and Copilot Vision, a cloud-powered feature that lets users interact with their screen more easily.
The good news is that this shift will lead to AI PCs dominating the market over the next five years. Research firm Omdia predicts that AI PCs will account for 55% of all computers shipped in 2026, up from 42.5% last year. By 2029, Omdia forecasts that AI PCs will make up 75% of all systems shipped, giving Windows an 80% share of the market.
However, it's worth noting that this steep adoption curve is largely driven by industry trends and product roadmaps, rather than consumer demand for AI-powered PCs. As Kieren Jessop from Omdia research notes, "For businesses, and consumers especially, AI-capable PC adoption is more a function of a customer going to purchase a device and that device just so happens to have an NPU."
While Microsoft's Copilot+ initiative hasn't quite lived up to expectations, it has served as an important learning experience for the company. It's clear that AI-powered PCs are the future, but for now, they're more about providing convenience and speed rather than revolutionary features.
As the tech landscape continues to evolve, we can expect to see more innovations in AI-powered devices and applications. But for now, it seems that Copilot+ will remain a footnote in Microsoft's history, serving as an important stepping stone towards a future where AI is seamlessly integrated into our daily lives.
The main issue is that many users aren't convinced by the limited AI features on offer. Microsoft's Recall feature, which allows you to capture a snapshot of your PC to create a database of everything you've done, was plagued by privacy concerns from the start. And while it may seem useful at first, I haven't found its ability to remember files and websites you've opened to be particularly practical.
As a result, consumers weren't willing to pay a premium for Copilot+ systems, especially during these uncertain economic times. The latest data from Mercury Research shows that Copilot+ systems accounted for less than 10% of all systems shipped in the third quarter of last year. And according to IDC, they made up just 2.3% of Windows machines sold in the first quarter this year.
So what's next for Microsoft? Instead of pushing forward with the Copilot+ initiative, the company has decided to pivot and instead aim to make every Windows 11 computer an AI PC. The new features include "Hey Copilot" voice commands and Copilot Vision, a cloud-powered feature that lets users interact with their screen more easily.
The good news is that this shift will lead to AI PCs dominating the market over the next five years. Research firm Omdia predicts that AI PCs will account for 55% of all computers shipped in 2026, up from 42.5% last year. By 2029, Omdia forecasts that AI PCs will make up 75% of all systems shipped, giving Windows an 80% share of the market.
However, it's worth noting that this steep adoption curve is largely driven by industry trends and product roadmaps, rather than consumer demand for AI-powered PCs. As Kieren Jessop from Omdia research notes, "For businesses, and consumers especially, AI-capable PC adoption is more a function of a customer going to purchase a device and that device just so happens to have an NPU."
While Microsoft's Copilot+ initiative hasn't quite lived up to expectations, it has served as an important learning experience for the company. It's clear that AI-powered PCs are the future, but for now, they're more about providing convenience and speed rather than revolutionary features.
As the tech landscape continues to evolve, we can expect to see more innovations in AI-powered devices and applications. But for now, it seems that Copilot+ will remain a footnote in Microsoft's history, serving as an important stepping stone towards a future where AI is seamlessly integrated into our daily lives.