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Air Street Capital · October 2025

State of AI Report 2025

Air Street Capital's State of AI Report 2025 (October 2025; n=1,200 (practitioner survey component), fielded 2025) found that 44% of US businesses now pay for AI tools, up from 5% in 2023 (Ramp data).

Read the original report ↗Cite2 min read · Summary updated
Average AI contract size has grown more than tenfold since 2023Average contract value for AI software products on Ramp, US$ thousands (2025 covers contracts effective through Q3)
Source: Air Street Capital, State of AI Report 2025 (Ramp Economics Lab data), 2025, Slide 101.

Key findings

  1. 01
    Average contract value for AI products hit $530k in 2025 and is expected to pass $1M in 2026.
  2. 02
    Twelve-month retention for AI products is now 80%+, and AI-first companies grew 1.5x faster than peers on Standard Metrics data.
  3. 03
    A survey of 1,200 practitioners found 95% use AI at work or home, and 76% pay for tools out of pocket.

By the numbers

44%of US businesses now pay for AI tools, up from 5% in 2023 (Ramp data)
$530Kaverage contract value for AI software products in 2025, up from $39K in 2023 (Ramp data)
76%of surveyed AI practitioners pay for AI tools out of their own pockets
Most AI practitioners pay for AI tools themselves, typically $21 to $100 a monthPercent of practitioner survey respondents by monthly personal spend on AI tools, 2025
$0 (free tiers only)
22.8%
Up to $20
19.7%
$21–$100
39.7%
$101–$200
7.4%
$200–$500
7.3%
Over $500
1.8%
Source: Air Street Capital, State of AI Report 2025, 2025, Slide 284.

What it means for you Draft

For executives at $10–100M companies

Paying for an AI tool is now normal, so the question has shifted from 'should we buy anything' to 'is what we bought changing how work gets done.' The fact that many people pay out of pocket suggests some of our employees may already be using tools we have not approved. A simple inventory is a sensible first step.

Limitations

Medium trust.Transparent, open-access, peer-reviewed by practitioners; but VC-authored with portfolio interests, practitioner survey is self-selected, spend data from Ramp card customers.

About the publisher: A venture capital firm that invests in AI companies.

The headline figure measures the “Approved” stage of adoption (sanctioned in a function).Why adoption numbers disagree

Cite the original

Air Street Capital. "State of AI Report 2025." October 9, 2025. https://www.stateof.ai/

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