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Hybrid artificial intelligence as a business strategy.

Hybrid artificial intelligence as a business strategy.

Recently, Lenovo Group — a global leader in PC manufacturing — reported its financial results for the second quarter of the 2024-2025 fiscal year. The volume of AI laptop shipments in China for the first half of the year reached double-digit figures as a percentage of the total PC volume. Additionally, revenue from non-PC businesses increased by 46%. Alnur Ermagambetov, Lenovo's head in Eastern Europe and Central Asia, discusses how the company maintains its market leadership by diversifying its business portfolio and the role of AI in implementing socially significant and ESG initiatives.

A few years ago, Lenovo set a course towards transforming its business into a provider of comprehensive intelligent solutions. The recently released financial report showed that nearly half of the company's revenue comes from non-PC related business. How does the company manage to maintain its leadership position in the global PC market with such business diversification?

— The announced results reflect the company's clear adherence to the previously chosen strategy, which focuses on hybrid AI. This strategy entails continuous investments in artificial intelligence research and the development of innovative solutions based on this technology.

We have been working with artificial intelligence for quite some time; we started by updating our own infrastructure, adapting the supply chain, diversifying our partner portfolio, and began creating our own ecosystem of ready-made AI solutions — all to ensure that our individual and business clients could access the benefits of AI products among the first. This is why we were among the first to introduce a portfolio of AI-enabled PCs and laptops this year, whose sales quickly captured a significant market share in China. Based on how positively this release was received in other countries, I am confident that our current successes in hybrid AI strategy will continue to strengthen the company's leadership and profitability until the end of the financial year.

How quickly should we expect a market revival due to the emergence of AI in PCs?

— According to our estimates, the PC market will gradually recover, and the introduction of AI-enabled PCs will serve as a catalyst for a new cycle of device upgrades across all consumer segments. We believe that by 2027, over 80% of all computers produced will be equipped with AI.

What can AI provide to the average user beyond increased performance?

— AI-enabled PCs, equipped with a combination of central, graphics, and neural processors, will not only enhance performance but also optimize energy efficiency, simplify connectivity with other devices within the ecosystem, and provide more advanced protection for users' personal and work data. With AI, every PC user could have their own personal assistant to help with routine tasks: information searches, document cataloging, organizing and maintaining the user's calendar, and building a personal knowledge base and habits — in short, anything that can improve the user's quality of life. Now imagine how AI can simplify life for people with disabilities. Beyond obvious technical tasks, AI holds immense potential for addressing social issues facing humanity.

Is this also part of your strategy?

— Lenovo produces the world's widest product portfolio with intelligent computing capabilities. We see it as our mission to make these capabilities accessible to as many people, businesses, and communities worldwide as possible so that with our technology, individuals can improve their quality of life, businesses can obtain effective tools for accelerating digital transformation, and communities can foster a more inclusive and sustainable environment for development.

Our technology user base is vast. From individual users to entire industries, from small interest-based communities to professional organizations — they all have different tasks, but they are united by Lenovo's intelligent technologies, providing advantages in better healthcare, faster and more efficient construction, higher-quality education, and more. This is why we always support significant events in the countries where we operate: sports, cultural, and community events.

One recent example is the ATP 250 Almaty Open 2024 tennis tournament held in Almaty. Last year, together with partners — the initiative group Connect-Ed and Technodom store — we conducted a charity campaign aimed at eliminating digital inequality among schoolchildren in Kazakhstan. In 2021, we helped establish beehives in the Main Botanical Garden of Almaty. This is a project that Lenovo supports in various countries, aimed at raising awareness of the ecological issue of bee population decline. And there are many such projects.

Which industry do you think is currently adopting AI the fastest?

— There is no definitive answer to this question. According to IDC's research, attitudes toward investments in artificial intelligence vary by industry. Most manufacturing companies take a conservative approach to adopting this technology. Meanwhile, telecommunications companies show the least interest, as they were among the first to implement AI and have already significantly invested in its development in recent years. Experts estimate that total business investments in AI will grow by 61% in 2024.

However, I can certainly point out where AI adoption is most evident, vivid, and illustrative. Lenovo actively supports professional sports at the international level. This allows us to see examples of how AI is transforming the sports world. In our time, everything is built on big data, and sports are no exception.

Lenovo is a global technology partner of Formula 1 (F1). Utilizing our high-performance computing (HPC) solutions and IT infrastructure, F1 organizes broadcasts of its events for millions of fans worldwide with the help of a globally distributed team that is always connected. Lenovo laptops, monitors, tablets, and Motorola smartphones provide access to AI solutions for real-time data processing during live broadcasts, creating engaging, personalized content for the ever-growing audience of this sport.

Since 2018, Ducati has been using our workstations to create digital twins of MotoGP racetracks. With the help of our AI-based edge computing solutions, the team's engineers can remotely analyze track data in real time, assist in setting up motorcycles, predict performance results, and quickly address any issues that arise during race weekends. In sports, big data plays a significant role. It gives an edge on the track and sometimes determines the difference between first and second place — just like in business.