Dell Technologies reversed its AI-first marketing strategy at CES 2026 after concluding that consumers show little interest in purchasing computers based on artificial intelligence features.
“What we’ve learned over the course of this year, especially from a consumer perspective, is they’re not buying based on AI,” Kevin Terwilliger, Dell’s head of product, told PC Gamer during a pre-briefing Monday. “In fact, I think AI probably confuses them more than it helps them understand a specific outcome.”
Terwilliger noted the contrast: “One thing you’ll notice is the message we delivered around our products was not AI-first. So, a bit of a shift from a year ago where we were all about the AI PC.”
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Dell’s new products still include neural processing units that enable AI features, but the company no longer emphasizes these capabilities in marketing materials. Jeff Clarke, Dell’s chief operating officer, described an “un-met promise of AI” and noted the company faces “a memory shortage that is pretty significant” in 2026.
Dell announced the return of its XPS laptop brand on Monday, with the new XPS 14 and XPS 16 starting at $2,049.99 and $2,199.99. Clarke said the company aims to reach more customers “with the best products at every price point.”
AI features carry premium pricing of $100 to $300, deterring mainstream buyers. Dell’s enterprise AI business continues to perform strongly, with server revenue reaching record levels in late 2025.
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