Markets
ICONIQ State of AI: AI-Native Companies Burn 0.8x ARR vs 2.0x for Non-AI, Move 3.6X Faster Through Product Lifecycle
ICONIQ Capital's survey of ~300 high-growth B2B software executives reveals stark divergence between AI-native and traditional companies. AI-native companies (32% of respondents) have a burn multiple of 0.8x at $100M+ ARR vs 1.6x for AI-enabled and 2.0x for non-AI companies. They move through the product lifecycle 3.6X faster and 79% are building agentic workflows vs 62% for AI-enabled companies. Engineering allocation for AI at high-growth companies will reach 37% by 2026, maintaining a 9-10 percentage point lead over peers. AI product gross margins are projected to hit 52% in 2026, up from 41% in 2024 — the economics are rapidly improving.
Source
↳ Follow the thread