Forget about AI unless you’ve got the right hardware

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published 30 June 2025

Nearly half of UK organizations are failing to invest in the right hardware to make the most of AI, jeopardizing momentum, productivity, and competitive edge.

According to Microsoft's 2025 Work Trend Index, 82% of UK business leaders say this will be a pivotal year for AI transformation, and 81% expect to have AI agents embedded into their operations within the next 12 to 18 months. 

However, only 46% of enterprise IT decision makers are currently factoring AI readiness into their hardware strategy. While 54% told Microsoft in a recent survey that employee productivity and performance was a priority in hardware purchases, 53% of workers said their current device isn't suitable for AI use.

Most IT decision makers are aware of the problem, with almost a quarter (24%) saying that opting for cheaper hardware has led to higher long-term costs from breakdowns and inefficiencies.

As a result, 58% are calling for their business to invest in devices that make it easier for employees to access AI tools on a day-to-day basis.

“While many organizations see the opportunity, too few are moving fast enough to equip their people with devices built for the era of on-device AI," commented Alan Slothower, head of surface commercial at Microsoft UK.

"If they haven’t already, enterprise hardware conversations must shift from ‘can we afford to upgrade?’ to ‘can we afford not to?’”

Four-in-ten decision-makers reported that investing in premium devices directly improved business outcomes.

AI requires a hardware rethink

Ben Coley, senior surface global black belt at Microsoft UK, said IT leaders should “ground conversations about hardware procurement in tangible outcomes that everyone in the business can understand”.

Simply put, IT leaders need to emphasize the fact that AI-enabled devices will lower total cost of ownership and enable teams to use the technology more efficiently.

The right devices, Microsoft said, are AI-optimized, featuring neural processing units (NPUs), built-in security from silicon to cloud, and a clear roadmap for updates and support. 

It's also important to consider refresh cycles, adapting device lifecycles to match the current wave of progress in AI progress. This includes taking a more flexible procurement approach through staggered upgrades, leasing, or device-as-a-service models.

"Given average refresh cycles, many of the devices bought this year may still be on desks in 2029," said Slothower. "It’s important IT leaders act now to ensure their organisations are set up for success.”

Skills are equally important, the company found. Only a fifth of the enterprise employees surveyed believe they have the skills to fully exploit their hardware’s AI features – a problem that may spiral as technology advances, Microsoft said.

As such, organizations should offer role-specific AI training and accessibility support, backing this up with a culture that encourages employees to innovate and learn.

Tracking usage can help identify early wins and guide future roll-outs, while ongoing measurement ensures that progress is visible, recognized and repeatable.

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Emma Woollacott is a freelance journalist writing for publications including the BBC, Private Eye, Forbes, Raconteur and specialist technology titles.