Annual report · drops Q1 2026

State of AI 2026.

Our honest read of the AI-services market — written from inside it, grounded in real engagement data, not vendor-fueled analysis. Published once a year. Useful, hopefully.

Stats we'll publish

84%
of AI engagements we ran in 2025 used Anthropic + at least one open-source model
12 weeks
median time from kickoff to production for fixed-fee sprints
3 of 5
of our flagship case studies replaced or augmented human ops roles — without firing the human
$0.0019
median cost per support deflection across our 2025 chatbot deployments

What's in the report

1 · What actually shipped in 2025
The categories that crossed the line into production. The patterns we now consider table stakes. The 'demos' that didn't survive Q4.
2 · Where the dollars went
Spend distribution across model providers, infrastructure, and labor. The shift from 'AI engineer' premium to senior generalists.
3 · The new buyer
Procurement teams that know what to ask. Compliance teams that won't accept hand-waving. The death of the demo-driven sale.
4 · Overhyped, underrated
What we wrote in 2025 vs what we'd write today. Where we were wrong. The use cases we underestimated.
5 · 2026 predictions
What we expect to ship. What we expect to stall. Where SMB and mid-market should focus their AI budget.