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Performance When AI Is Core to the Product vs. Supporting Feature

High AlphaDecember 2025
Performance When AI Is Core to the Product vs. Supporting Feature
Chart by High Alpha. Source: highalpha.com

A comparison of Year-Over-Year Growth Rate, Software Gross Margin, and Rule of 40 metrics between companies where AI is core to the product and those where AI is a supporting feature. AI-first companies grow over three times faster and achieve stronger Rule of 40 metrics, despite having slightly lower median gross margins due to compute costs.

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