Why Endpoint Strategy Is Now AI Strategy

• • AI readiness depends on modern endpoints as much as AI tools, platforms and policies.
  • AI PCs help agencies strengthen security, support Zero Trust and enable on-device AI workloads.
  • Successful adoption requires aligning device modernization with workforce training and governance.
  • As more software vendors shift AI processing to the NPU, agencies that delay refresh decisions risk limiting the value of tools they are already deploying.

I’ve had the same conversation with federal IT leaders countless times over the past year.

Agencies are investing in AI, leadership teams are aligned, budgets are being evaluated and use cases are taking shape.

Then the discussion turns to the devices employees use every day.

That’s when the conversation changes.

The issue is no longer whether agencies see AI as important. It is whether the endpoint environment is ready to support it. A Forrester Consulting study commissioned by Dell Technologies and Microsoft Copilot points to a growing gap between AI ambition and endpoint readiness, while broader market trends show AI capabilities are becoming embedded in the software workforce teams already use every day.

That urgency is increasing. Gartner projected that by 2026, more than 80% of independent software vendors will have embedded generative AI capabilities in their enterprise applications, up from less than 1% in 2023. In practical terms, that means agencies are not preparing for some distant future state. They are preparing for a software environment that is already shifting underneath them. As more applications are designed to offload AI tasks to local silicon, the question is no longer whether to future-ready the fleet. It is whether the fleet being purchased today will be able to fully support the software experience users will expect over the next refresh cycle.

The hidden barrier to AI adoption

When organizations discuss AI transformation, conversations typically focus on models, platforms, governance and data. Those are all critical elements of a successful strategy. But they are only part of the equation.

The endpoint has become increasingly important as agencies work to deploy AI securely and effectively. Outdated devices create challenges that extend beyond performance. They can slow adoption of modern software, create support burdens for IT teams, increase exposure to cyber risk and make it harder to deliver consistent user experiences across the workforce.

This matters because federal teams are being asked to do more with increasingly sophisticated digital tools. If the device cannot support the software experience, agencies may invest in AI-enabled platforms, licenses and training without ever realizing the full return on that investment. In many cases, the limiting factor is no longer the software. It is the endpoint.

Why modernization is hard and why waiting is riskier

Modernization is not always easy, especially in government.

Procurement complexity often gets in the way of getting users the modern systems they need on the timeline mission demands. Refresh decisions can be delayed by contracting cycles, budget timing, approval layers, standards reviews and the need to validate configurations against agency requirements. Those pressures are compounded by legacy application dependencies and constrained IT resources. In many environments, that means teams continue supporting aging systems simply because replacing them feels operationally difficult.

But waiting creates its own risk.

A delayed refresh does not preserve the status quo. It increases the likelihood that agencies will be trying to run a new generation of AI-enabled software on hardware that was never designed for those workloads. It can also leave security teams defending older devices while agencies are simultaneously trying to advance Zero Trust goals, reduce technical debt and improve cyber resilience. In other words, modernization may be hard, but falling behind is harder.

Why AI PCs matter now

AI PCs are becoming an important part of federal technology strategies because they help bridge the gap between AI ambition and operational reality.

Unlike traditional devices, AI PCs include dedicated neural processing units, or NPUs, designed to handle AI workloads efficiently on the device. That matters because AI features are increasingly moving closer to the endpoint. As software vendors build experiences that rely on local AI acceleration, NPU capability becomes more than a spec-sheet detail. It becomes part of whether the device can deliver the security, responsiveness, battery efficiency and user experience modern AI tools are designed to provide.

For agencies exploring technologies such as Microsoft 365 Copilot, modern hardware is especially important. Devices that meet Copilot-capable thresholds are better positioned to support the full intended experience, while devices that do not may deliver uneven or limited results. Hardware and software capability are now directly connected.

This is why the timing matters now. The fleet decisions agencies make today determine whether their workforce will be ready for the AI-enabled software environment arriving across the next two to four years.

Security: What that actually means

When people say modern AI PCs improve security, that should mean something concrete.

In federal environments, security is not just about antivirus or endpoint detection. It is about reducing exposure, protecting sensitive information, supporting compliance and giving agencies more control over where AI processing happens.

On-device AI can help keep certain tasks and data local rather than sending everything to external environments. That matters for agencies dealing with sensitive information, continuity requirements, connectivity limitations or restricted operating environments. Modern devices also support the hardware-rooted and built-in protections federal agencies increasingly expect, including capabilities aligned to Secure Boot, TPM-based trust and passwordless security approaches.

More broadly, modern endpoints support Zero Trust objectives by making it easier to standardize security posture across the fleet, enforce policy consistently and reduce dependence on older systems that carry more operational and cyber risk.

Productivity: What actually gets better

Productivity gains from AI PCs should also be specific.

Yes, tools like Microsoft 365 Copilot are part of the story. But the broader value is in the workflows that can become faster, smoother and less manual when users have devices built for AI-enhanced experiences.

Examples include:

• • Summarizing documents, notes and long email threads
  • Drafting and revising content
  • Transcription and translation
  • Search, retrieval and knowledge assistance
  • Meeting follow-up and action-item capture
  • Image and media assistance
  • Data analysis support inside productivity applications
  • Policy-sensitive tasks where local processing is preferred

For federal agencies specifically, high-value workflows may also include reviewing sensitive documents, classifying information, summarizing mission content, translating material in constrained environments, supporting secure offline AI processing and improving how teams handle content in DLP-sensitive or connectivity-limited settings.

The key point is that productivity is not just about employees working faster in the abstract. It is about reducing friction in the daily workflows that consume time across mission, administrative and security functions.

A practical path forward

Federal organizations do not need to modernize every endpoint overnight to begin realizing value from AI.

The most effective approach is to start with mission outcomes and specific workflows.

Identify where AI can have the clearest measurable impact. That may include document-heavy knowledge work, meeting and collaboration workflows, translation and transcription, internal search and summarization, security-sensitive offline processing, content drafting, frontline decision support and other use cases where time savings, accuracy and responsiveness matter.

Then evaluate what those users need to support those outcomes successfully:

• • What applications they rely on
  • Whether those applications are adding local AI features
  • What level of NPU capability is needed
  • What security controls apply to the workflow
  • Whether the work must happen online offline or in hybrid mode

Not every employee requires the same device configuration. User roles, workloads and data sensitivity levels vary significantly across organizations. Aligning endpoint investments to those realities helps ensure resources are focused where they can deliver the greatest benefit.

Agencies should also use pilot deployments to validate assumptions before scaling. Small, targeted programs can reveal compatibility requirements, support needs, user adoption challenges and security considerations before broader deployment decisions are made.

Finally, modernization efforts should be paired with workforce readiness initiatives. Technology alone will not close the AI readiness gap. Training, governance and responsible AI policies remain essential for helping employees adopt new capabilities securely and effectively.

A foundation for secure AI

Federal agencies are making important AI decisions today that will shape mission outcomes for years to come.

The critical point is this: endpoint modernization is no longer a background IT issue or a routine refresh exercise. It is part of whether agencies will be able to securely adopt and scale the next generation of AI-enabled software.

Organizations that future-ready the fleet now will be better positioned to strengthen security, improve workforce productivity and make full use of the AI capabilities software vendors are already embedding into everyday tools. Organizations that wait may find that the devices supporting their workforce become the limiting factor in their AI strategy.

The future of federal AI will be shaped not only by the platforms agencies choose, but by the endpoints that bring those capabilities to life every day.

Frequently Asked Questions

What did the Forrester study find about AI readiness in federal agencies?

Forrester Consulting, commissioned by Dell Technologies and Microsoft, surveyed 324 federal IT decision-makers in spring 2026. Nearly 60% said AI-capable endpoint devices will be important to mission success over the next two years. Only about one in four said their workforce is fully or very prepared to adopt AI tools, and nearly half said their organization needs a large-scale device refresh.

What is a Copilot-capable device and why does it matter?

A Copilot-capable device is an AI PC with a neural processing unit (NPU) that meets the minimum performance threshold, measured in TOPS, needed to run Microsoft 365 Copilot features as designed. Devices that don’t meet that threshold may run a Copilot subscription, but with limited or inconsistent functionality. Hardware and software capability are connected.

Why does on-device AI processing matter for government agencies?

Many government workflows involve data that can’t or shouldn’t move through cloud environments due to classification, data sovereignty requirements or connectivity constraints. AI PCs can run a range of AI workloads locally, on-device, which supports Zero Trust and FISMA-aligned security models and expands what’s possible in restricted or air-gapped environments.

How should agencies approach an AI PC refresh without disrupting operations?

Start with targeted pilots rather than a full fleet rollout. Pilots generate real-world data on hardware compatibility and support needs, and build the evidence base required for broader procurement approvals. Segment users by role and workload type to direct investment where it has the greatest impact.

What’s included in the Microsoft 365 Copilot offer with Dell AI PCs?

A free Microsoft 365 Copilot subscription is available with qualifying Dell AI PC purchases. To access the full range of Copilot features, the device must meet Copilot-capable hardware standards, including sufficient NPU performance. Reach out to your Dell representative for details on eligible configurations.