AI-native software companies lead industry growth, KeyCorp benchmark shows
KEY•KeyCorp's software benchmark found core AI companies had median annual recurring revenue growth of 34% in 2025, compared with 22% for companies embedding AI, but lower median EBITDA margins of -12% versus -1%. AI-driven annual recurring revenue is projected to grow 128% in 2026, reaching 12% of the total.
1. Growth and profitability
KeyCorp's software benchmark found core AI companies had median annual recurring revenue growth of 34% in 2025, compared with 22% for companies embedding AI. Core AI companies had a median EBITDA margin of -12%, versus -1% for embedded AI companies.
2. AI revenue and budgets
AI-driven annual recurring revenue is projected to grow 128% in 2026 and reach 12% of total annual recurring revenue. AI spending exceeded year-to-date budgets at 44% of respondents, while 24% reported overruns exceeding 20%.
