US corporate AI spending hits a new high in October, but growth slows to 1.65 percent
The business move
US corporate spending on artificial intelligence reached a new high in October 2026 but slowed significantly, growing just 1.65 percent according to the Ramp AI Index. The bulk of AI revenue still flows through a very narrow set of companies, with one percent of firms responsible for 80 percent of revenue for major players like OpenAI and Anthropic. Meanwhile, customer support applications are emerging as a fresh area of AI investment, though this shift introduces new dynamics around profitability compared to AI use in coding.
Why it matters
The slowdown in spending growth signals that AI adoption is maturing and may face real-world limits on scaling at previous rates. Most corporate AI dollars remain concentrated in a few large players driving innovation and revenue, keeping power tightly with providers like OpenAI and Anthropic. The rise of AI in customer support points to a shift in use case priorities, expanding AI beyond development workflows but also bringing potentially lower profit margins than high-value coding automations. That margin squeeze will force companies to rethink their AI investment priorities and cost management.
Who gains and who gets squeezed
OpenAI, Anthropic, and a handful of AI vendors continue to capture the majority of AI revenue, reinforcing their dominant market position. Corporate buyers focused on coding automation have enjoyed higher margins so far, but as the AI customer support segment grows, companies operating in or building tools for this space will face tougher economics. Smaller players not among the top one percent may find it harder to capture revenue as the market consolidates. Buyers should expect tighter vendor lock-in and a more cautious budgeting approach as the growth pulse slows.
What to watch next
Monitor how AI spending evolves across different enterprise functions beyond coding and support. Watch whether new providers challenge the dominance of OpenAI and Anthropic or if market concentration intensifies further. Track margin changes in customer support AI to see if these use cases become sustainable growth drivers or pressure corporate spending efficiency. Finally, keep an eye on AI budget flexibility as companies weigh ROI in a more cautious environment. The balance between rapid innovation and profitable scaling is now the key tension shaping the AI adoption curve.
AI Quick Briefs Editorial Desk