AI Builders Shift From Models To Applications

ICONIQ Capital released its January 2026 "State of AI: Bi-Annual Snapshot", surveying about 300 software executives on AI product strategy and economics. The report finds a shift to vertical applications (≈70%), improving AI gross margins projected at 52% in 2026, growing multi-provider model use, widespread pricing experimentation, and rising R&D allocations—especially among 100%+ growth companies. It signals an 'execution era' prioritizing product differentiation, cost efficiency, and pricing.