In a surprising and frank revelation at the CES 2026 tech showcase, computer giant Dell admitted that artificial intelligence features are not convincing consumers to buy new PCs. The company's head of product, Kevin Terwilliger, stated that the past year taught Dell a hard lesson: purchasing decisions are not based on AI capabilities, and the technology often creates more confusion than solutions for the average user.
From AI Hype to Consumer Reality
Terwilliger's comments to PC Gamer highlighted a significant shift in the industry's understanding. "What we've learned over the course of this year, especially from a consumer perspective, is they're not buying based on AI," he explained. He went further, suggesting that AI probably confuses customers more than it helps them understand what a new computer can actually do for them.
This candid admission marks a stark contrast from Dell's own marketing just a year prior. At CES 2025, the company was "all about the AI PC," aggressively promoting its devices around artificial intelligence. This year, the strategy changed completely. Dell deliberately avoided leading with AI messaging in its announcements, even though every new product it unveiled still contained a Neural Processing Unit (NPU) inside.
Microsoft's AI Strategy Hits a Wall
Dell's new stance places its key partner, Microsoft, in a difficult position. Microsoft has heavily invested in AI as the engine for a major PC upgrade cycle, especially after Windows 10 reached its end of support in 2025. The software giant has been pushing AI features into Windows 11 and promoting its new category of Copilot+ PCs.
However, if Dell's assessment is correct, this core strategy is failing to connect with buyers. Exclusive AI features for Copilot+ PCs, such as Windows Recall and Click To Do, have not generated significant consumer excitement. The Recall feature, in particular, faced serious security and privacy criticism after its announcement.
Dell's Chief Operating Officer, Jeff Clarke, acknowledged the wider industry issue, referencing "this un-met promise of AI, and the expectation of AI driving end user demand." The reality, according to Dell's findings, is that shoppers still prioritize traditional laptop strengths: long battery life, reliable performance, and excellent display quality.
Dell Pivots Back to Basics
In response to this learning, Dell is now refocusing its efforts on what it believes customers truly value. The company is doubling down on improving core hardware, enhancing build quality, and reviving beloved brands. A key part of this strategy is the return of its popular XPS laptop line, which the company had controversially discontinued the previous year.
This move signals a broader industry recalibration. While AI development continues behind the scenes, marketing and consumer messaging are shifting away from hyping unproven AI tools and back toward delivering tangible, reliable improvements in the devices people use every day.
