AI can help companies attract investors, but not necessarily consumers, and Dell seems to be the first PC maker to realize that the “AI PC” push isn’t working, at least not right now. While Microsoft wants you to buy a new PC to run AI agents or models locally, Dell disagrees and plans to focus instead on design, comfort, battery life, and displays.

Dell generates about 40% of its revenue from selling PCs and laptops, and the US-based company doesn’t want to lose its loyal audience. During CES 2026, Dell confirmed that it’s shifting away from betting big on “AI PCs” that consumers don’t find useful.

“We’re getting back to our roots with a renewed focus on consumer and gaming,” a Dell executive said at CES 2026.

This is a U-turn from Dell’s stance in 2025 when the company strongly believed in AI and even retired product lines like XPS, Inspiron, and Latitude in favor of Dell, Dell Pro, and Dell Pro Max. Dell wanted to simplify its branding so consumers could easily pick a new “AI PC.”

It turns out Dell’s AI efforts haven’t been successful, but Dell isn’t alone. PC makers need to realize that not everyone wants to run AI locally on their computer, and few people use AI for tasks like generating images all the time.

“It was obvious we needed to change,” said Jeff Clarke, Vice Chairman and COO of Dell Technologies, while speaking at a CES 2026 event in New York City.

This year, Dell is bringing back XPS and scaling down its AI ambitions. Dell found that mainstream buyers care more about solid hardware than local AI features. This course correction follows weak consumer PC demand and backlash against last year’s branding and design changes.

However, Dell is not dropping the Copilot+ PC branding completely, as it still needs to follow Microsoft’s guidelines. In other words, Dell’s 2026 refresh and new XPS models will still have the Copilot key, whether you like it or not.

Dell confirmed millions are still on Windows 10

Previously, Windows Latest spotted that Dell has admitted millions are still using Windows 10, and migration to Windows 11 has been slower than expected.

During its Q3 2026 earnings call, Dell’s COO Jeffrey Clarke revealed that PC sales remain flat and that the Windows 11 transition is about 10–12 points behind Windows 10’s adoption at a similar stage.

The company noted that many users are still holding on to older PCs instead of upgrading, and while Windows 11 was meant to push new hardware sales, most consumers simply don’t see a reason to leave their stable Windows 10 systems.

Microsoft’s efforts to push AI are also not helping the PC makers, but could Dell’s efforts to win back consumers change the PC market for the better? Only time will tell.

You don’t fix what isn’t broken, and the same applies to Windows 11. Nobody likes unnecessary AI features or the ability to run AI models locally when the OS still struggles with real issues, such as the lack of native apps and slow performance.

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