News•Apr 22, 2026
Your AI Feature Is Quietly Destroying Your Gross Margin
SaaS companies that embed AI often treat the new inference and infrastructure expenses as ordinary COGS, which can sharply erode gross margins. While classic SaaS targets 70‑80% margins, the ICONIQ 2026 State of AI survey shows AI‑enabled products anticipate only about 52% average margin. A simple $100 revenue example illustrates margin dropping from 80% to 65% when $15 of AI‑related costs are added. Executives are urged to isolate AI COGS, adjust pricing, and monitor usage‑based metrics to protect profitability.
