      ICONIQ Capital · 2026-01-01
      · 154d
    

The Execution Era of AI: State of AI Bi-Annual Snapshot 2025

ICONIQ's bi-annual State of AI report reveals the market is transitioning from experimentation to disciplined execution, with differentiation shifting from model-level to application-layer innovation. Based on ~300 executive surveys, the report identifies key trends including multi-model architectures becoming standard, evolving monetization models, and AI acting as a productivity multiplier rather than a headcount reducer.

14 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

AI Productivity Improvement

30-40%%

range

Time savings from coding, testing, documentation, and content generation

Application-Layer Differentiation Focus

70%%

of builders

AI product companies focusing on vertical applications

Average Model Providers Used

3.1providers

mean

AI builders using multi-model architectures (Dec 2025)

Average Model Providers Used (Prior)

2.8providers

mean

AI builders six months prior (June 2025)

Consumption-Based Pricing Model

35%%

of companies

Companies using consumption-based pricing

Expected Gross Margins

52%%

mean

AI product companies in 2026

Outcome-Based Pricing Model

18%%

of companies

Companies using outcome-based pricing

Outcome-Based Pricing Tied to Cost Savings

36%%

of companies

Companies experimenting with outcome-based pricing

Outcome-Based Pricing Tied to Revenue Generated

18%%

of companies

Companies experimenting with outcome-based pricing

Planned Pricing Model Changes

37%%

of companies

Companies planning to change pricing model in next 12 months

Primary Differentiation Source: Application-Layer

49%%

of companies

Companies reporting application-layer as primary differentiation

Primary Differentiation Source: Proprietary Models

14%%

of companies

Companies relying primarily on proprietary model development

R&D Employee AI Adoption Rate

60%%

of employees

Active AI tool adoption within R&D functions

Subscription/Platform Pricing Model

58%%

of companies

Companies still using subscription or platform pricing