Gross margin, which is revenue minus the cost of goods sold, is increasingly important for software companies, especially those using AI technologies.

As AI evolves, it will provide companies with greater leverage, allowing them to operate more efficiently and create new opportunities for innovation.

In competitive markets, CEOs prioritize growth over cost savings, and successful AI implementations should focus on driving measurable topline outcomes.

Full stack companies can now operate like software companies, leveraging AI to reduce the need for large operational teams and improve gross margins.

As AI becomes more effective, it will reduce execution friction for businesses, allowing them to focus on their core ideas and streamline operations.

AI is driving unprecedented growth in startups, allowing small teams to achieve significant revenue milestones quickly, sometimes reaching $10 million a year within 12 months.

The emergence of vertical AI is expected to enable a significant increase in the number of companies reaching substantial revenue, as the value proposition for these products is strong.

To succeed, AI companies need to understand their unit economics and how to price their services effectively based on the value they provide.

AI is set to expand the total addressable market for software significantly, as it enables companies to automate tasks that were previously unaddressed, leading to increased spending on software.