(This article has been updated to fix a typo.)

Over the last two years, millions of Americans have explored the world of “generative AI,” starting with OpenAI’s ChatGPT and later with offerings like Google Gemini (previously known as Bard), Microsoft’s CoPilot, and others from Meta AI and more.

These “Gen AI” tools have enabled individuals—from students to professionals—to generate various types of content, whether it’s designing a personalized travel itinerary, crafting business plans, or producing images for use in presentations and websites.

While many services are free, getting tailored outputs or creating advanced media like on-demand AI videos often requires a subscription fee.

Currently, most generative AI operates as online applications needing internet access.

As you consider purchasing gadgets for yourself or as gifts during the upcoming fall and winter holidays, you’ll likely encounter the integration of AI technology as a primary selling feature in many devices.

AI is increasingly being incorporated directly into the technology itself.

For instance, new laptops are marketed as “AI PCs” featuring “CoPilot+” in the Windows OS. Apple is launching its “Apple Intelligence” for the upcoming iPhone 15 and 16, which will operate on iOS 18. Samsung is promoting Galaxy AI across its range of mobile devices, and even its AI-driven home appliances, such as refrigerators and washing machines, fall under this umbrella.

What Benefits Does AI in Hardware Offer?

“People are increasingly captivated by AI because it enhances the efficiency of their daily lives and work,** says Dan Ackerman, Editor in Chief at Micro Center News, a news division of the well-known computer and electronics retailer established in 1979.

“There are clear advantages to using local AI rather than cloud-based options, especially concerning privacy and security,” Ackerman explains. “For example, not every piece of information, like tax records or sensitive business documents, should be sent to the cloud.”

“Cloud-based generative AI is useful, but a hybrid approach appears to be the future,” Ackerman predicts. “I foresee a growing emphasis on local AI for reasons of privacy, speed, cost, and efficiency. Thus, any new laptops or desktops will not only come with a CPU and GPU for performance but also include an NPU, or neural processing unit, designed to manage AI tasks and run extensive language models and image generation locally.”

However, not all technology analysts are convinced of the merits of having AI on devices.

“Consumers are uncertain about what benefits AI will deliver regarding their investment,” argues Carolina Milanesi, President and Lead Analyst at Creative Strategies, a market research firm based in Silicon Valley.

Supporting Milanesi’s viewpoint, AI-integrated devices generally come with a higher price tag. For example, a Dell XPS 13 laptop with the latest Intel Core Ultra Series 2 processor (256V Series), featuring AI capabilities, starts at $1,399, whereas a standard Dell XPS 13 laptop with the previous generation Intel Core Ultra processor costs $1,099, even with similar specifications.

“In certain cases, such as smartphones, features related to camera technology or intuitive functions like ‘circle to search’ might resonate well with consumers, but they are unlikely to specifically seek out AI when shopping,” Milanesi states, “though they will appreciate it as long as all other requirements are met.”

Explore Google Gemini on Android Devices

Available on select Android smartphones, including Google Pixel and Samsung Galaxy models, Google’s “Circle to Search,” mentioned by Milanesi, allows users to press and hold the Home button and use a finger or stylus to draw around any item on their phone’s screen—whether it’s a striking landmark from a social media post or an actress in a Netflix series. The phone will then immediately conduct an online image search and display relevant details.

This feature works across all applications, and users do not need to exit the app to view search results, which are shown at the bottom half of the screen (from where they can save, share, etc.). You can also utilize Circle to Search in real-life scenarios; for instance, if you admire someone’s shoes in front of you in the grocery store line, you can point your camera at them (no photo needed) and circle the shoes to uncover brand details, prices, and more. This feature also works for searching text.

In a similar vein, Samsung Galaxy smartphones come equipped with a Generative Edit function that leverages AI to review photos and propose enhancement options, such as eliminating shadows from faces, straightening crooked images, or removing unwanted gestures like someone playfully making “rabbit ears” behind a person’s back. Users can also have fun by repositioning elements in a photo, such as making a skateboarder appear to be soaring high or even flipping upside down.

(When generative AI modifies an image, a watermark will appear in the lower-left corner and in the metadata to indicate that it’s been enhanced.)

Drew Blackard, who is the VP of Mobile Product Management at Samsung Electronics America, stated to YSL News, “Since the Galaxy S24 was launched earlier this year, 75% of our users have utilized our AI features. In a recent week, our S24 series users used Galaxy AI features 18 million times, just in the U.S.”

“This demonstrates that consumers clearly want these features,” Blackard noted.

Samsung’s Galaxy AI, in collaboration with Google Gemini, allows users to transcribe calls in different languages live or condense conversations into bullet-point summaries. Additionally, “Chat Assist” offers improved messaging capabilities, including suggested replies and proofreading tools.

What do customers think about it?

HP, among several computer manufacturers adopting AI PCs equipped with CPU, GPU, and NPU, shared their perspectives.

“Once customers grasp the capabilities of AI on their devices, it becomes an easy choice,” expressed Sam Chang, Senior Vice President and Division President of Consumer PC Solutions at HP.

“There are cost savings since you don’t have to pay for subscriptions, it’s safer and more private than cloud options, and you enjoy faster responses by processing models locally,” Chang stated in an interview during HP Imagine, the company’s annual event in late September in Palo Alto.

Bringing ‘personal’ back to personal computers

Intel, a major player in the semiconductor industry, revealed that AI PCs are the fastest increasing segment of PCs, with Intel being the top supplier, having shipped over 15 million devices since December 2023 and anticipated to exceed 40 million by year-end.

“Customers are genuinely excited about AI PCs that use Intel Core Ultra CPUs,” said Chris Tobias, General Manager at Intel Corporation. “However, it appears that many consumers may not fully understand the advantages of AI on PCs.”

“This misunderstanding can lead to reluctance in acquiring a new PC,” Tobias added. “The view that AI is ‘intimidating’ or ‘unnecessary’ often comes from a lack of understanding about its potential benefits.”

He pointed out that individuals already use AI in their daily lives without realizing it, like with voice assistants, photo editing, and grammar checkers.

“When consumers witness how AI on PCs can enhance their experience, streamline processes, and improve performance—especially in a secure and smooth setting—they generally become more receptive to adopting it.”

AI PCs go beyond just language models or image generation; they can also extend battery life, facilitate faster video editing for creators, and analyze user content for a personalized experience.

According to Gartner, AI PCs are predicted to grow by 165% year over year until 2025, comprising 43% of the PC market, which also includes products from Intel’s rivals like AMD and Qualcomm.

On October 1, Microsoft unveiled new features for Copilot+ on PCs, including “Click to Do” (creating an interactive overlay on your screen for suggested quick actions over images or text); enhanced Windows Search (locating files by describing them in your words); and “Super Resolution in Photos” (improving your lower-resolution images to high quality without blurring or pixelation).

Apple also commits to AI

Though it wasn’t featured in last month’s highly anticipated iPhone 16 launch, AI – termed “Apple Intelligence” by Apple – is expected to roll out sometime in October. This set of tools and technologies aims to assist users in performing new tasks on iPhones, ensuring privacy protection in the process.

The AI will enable you to draft emails and iMessages, generate images based on specific prompts, record and summarize audio, and include a smarter, more conversational Siri, among various other features.

Like Google Pixel and Samsung Galaxy devices, iPhone users will soon have the ability to remove unwanted elements from photos and access other useful AI tools. By the end of the year, “Apple Intelligence” will allow users to use the new touch- and pressure-sensitive Camera Control button on the right side of the iPhone to analyze objects in the camera’s view, such as identifying dog breeds.

However, “Apple Intelligence” is still in the works but expected to arrive soon. If that is what consumers want.