The enterprise AI sector is undergoing rapid transformation, with traditional SaaS models proving less effective in the AI era. According to Andreessen Horowitz (a16z), AI-native startups are experiencing accelerated growth, with some reaching $5 million in annual recurring revenue (ARR) within approximately nine months, surpassing the classic $1 million ARR benchmark for Series A funding. This growth is driven by enterprises allocating dedicated AI budgets and CEO-level mandates to adopt AI solutions. Key insights from a16z highlight that while flashy demos are easy to produce, delivering viable AI products remains challenging. Speed and first-mover advantages are increasingly critical, with tenfold growth becoming the new norm. Lower barriers to AI application development suggest a forthcoming explosion in AI adoption, but companies must still build durable competitive moats to sustain their market positions. AI pioneer Andrew Ng is investing $190 million through his AI Fund in agentic systems—AI architectures capable of planning, reflecting, and acting in tight feedback loops—viewed as the next growth curve in enterprise AI. The market is also anticipating a wave of mergers and acquisitions as competition intensifies, with major technology firms prepared to acquire promising AI startups. Industry experts emphasize the importance of framing AI initiatives around solving new problems that were previously unsolvable, rather than simply exploring how to use AI, to avoid project failures.