2026 State of AI Report — The Builder's Economy

The report's methodology involved a detailed survey conducted in Q2 2026, which included qualitative insights from the ICONIQ community of AI leaders. The findings are compared with data from a previous survey conducted in Q4 2025, ensuring that the results reflect genuine shifts in the industry rather than variations in respondent demographics. The surveyed executives predominantly hold technical and product leadership roles, such as CEOs, Heads of Engineering, Heads of AI, and Heads of Product, with a significant concentration in North America.

Key findings from the report highlight a convergence among builders towards the application layer, with nearly two-thirds focusing on horizontal or vertical applications. Multi-model strategies have become the norm, with companies averaging about 3.3 models in use. The financial impact of AI is evident, with AI products projected to account for 42% of revenue in 2026, up from 32% in 2025, and gross margins expected to reach approximately 59% by 2027. Additionally, the report indicates a shift in organizational structures, with many companies planning to adjust their workforce dynamics to better integrate AI capabilities.

The report serves as a valuable resource for founders, engineering leaders, product managers, and finance professionals interested in the evolving landscape of AI. It provides actionable insights into how AI is reshaping business strategies and operational models, making it essential reading for anyone involved in AI development and implementation. The findings underscore the importance of adapting to the changing economic realities of AI, where the focus has shifted from merely deploying AI features to building sustainable and scalable AI-driven businesses.

For those looking to understand the current state of AI and its implications for the future, the 2026 State of AI Report offers a detailed and data-driven perspective on the challenges and opportunities that lie ahead in the Builder's Economy.