Research Report
The TSIA AI 20 Index
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November 25, 2025
Overview
Challenges
The TSIA AI 20 is a novel index highlighting the top technology companies that have artificial intelligence as a fundamental component of their business model--so-called AI-native companies. The AI 20 challenges existing market structures with their hyper-growth strategies, posing significant risks to established competitors in the technology sector. This article emphasizes the urgency for 'incumbent' companies to adapt their business models to avoid obsolescence.
Summary
This report introduces the TSIA AI 20, a transformative index spotlighting twenty public companies built around AI-native business models. These challengers exemplify disruptive growth, contrasting sharply with traditional technology leaders and SaaS companies struggling with profitability. The findings signal a pressing need for established firms to innovate aggressively or risk obsolescence.
Included in the full report
Emergence of the AI Native Model:
The AI 20 reflects a significant shift in strategy, demanding deep investments and resulting in high growth despite initial losses.
Competitive Threat to Incumbents:
AI-native companies are positioned to disrupt traditional models, rendering legacy offerings obsolete through disintermediation.
Limitations of Incremental AI Adoption:
Merely adding AI features is insufficient; companies must fundamentally rethink their business strategies to survive.
Urgency for Transformation:
Established firms must be willing to disrupt and potentially cannibalize their legacy models to stay competitive.
Validated Growth Strategy:
Successful pathways exist for firms navigating from unprofitability to sustained hyper-growth and profitability, exemplified by leaders like Palantir.
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