VENDORiQ: Is Your Desktop Strategy Prepared for the AI-Embedded Windows OS Future?

Why it Matters

For end-user computing teams preparing for Windows 10’s end-of-life in October 2025, these developments represent more than just another technology update. The embedding of AI models directly into the Windows operating system represents a notable shift in how desktop environments function and how users may interact with their devices. Microsoft’s strategy means that AI capabilities are a bound element of the operating system, rather than an optional add-on.

The AI services that will then be present will change user engagement, potentially reducing the use of traditional application interfaces as different modes of interaction become prevalent, as detailed in the IBRS advisory, The Future of End-User Computing: The Biggest Change Since the Mouse is Upon Us. 

The integration of advanced AI features, such as those announced for Copilot+ PCs, will drive the adoption of dedicated AI chips, also known as neural processing units (NPUs) in new devices. These NPUs are cited not only for their ability to enhance performance in AI services but also for their potential to improve device power efficiency, notably battery life. IBRS predicts that NPUs will become as common as graphical processing units (GPUs) within five years. 

This will drive changes in hardware requirements for end-user computing devices. Microsoft will not be the only device supplier adding NPUs to its devices.  

This evolution has direct implications for hardware planning cycles. As AI-specific processing capabilities become more integral to optimal Windows performance, organisations may need to re-evaluate their hardware specifications for upcoming refreshes. Devices without AI accelerator chips or sufficient computational resources may struggle to deliver the whole experience in Windows 11 and beyond.

Organisations must consider the implications of this shift for their hardware procurement cycles, lifecycle management, and potential software compatibility with these new AI-optimised systems. Features like Recall, which allows users to find content using natural language or visual search, underscore the potential for a more intuitive, though potentially data-intensive, user experience.

The emphasis on securing AI interactions through protocols like MCP and the availability of IT controls for commercial customers highlight the criticality of data governance and privacy in this evolving landscape. IBRS predicts that many existing solution developers, from vendors of gaming titles to video and collaboration solutions to design and creative tools, will quickly adopt MCP and either leverage Microsoft’s AI models or ship their own.

Who’s Impacted?

• Desktop Support Teams: Must adapt to new diagnostic tools, manage NPU-equipped hardware, and support user interaction changes driven by AI features.
• Procurement Officers: Will require updated procurement strategies to source NPU-equipped devices, balancing performance needs with cost and availability.
• Information Security Officers (CISO): Must address new security implications related to AI models embedded in the OS, considering data privacy, access controls, and potential vulnerabilities of AI-driven features like Recall, which require careful management, especially for commercial deployments 
• Application Development Teams: Need to understand the Windows AI Foundry and MCP to develop or adapt applications that leverage AI models directly within the operating system.

Next Steps

• Evaluate current hardware standards and consider a roadmap for integrating NPU-equipped devices into the fleet over the next five years.
• Assess the implications of AI-embedded operating systems on existing data governance, privacy, and security policies, particularly concerning new features like Recall 
• Investigate the functionality of the MCP to understand its role in secure AI agent-application interactions and its potential impact on custom application development strategies.
• Begin planning for potential user training and change management initiatives to address significant shifts in how employees interact with their devices and the operating system.
• Monitor industry developments regarding NPU adoption and AI integration within desktop operating systems to refine long-term IT infrastructure and capability strategies.