I just saw a16z’s latest breakdown of where enterprise AI revenue is actually coming from, and the leader is no surprise but the margin is. Coding and software development tools have captured roughly $3 billion in annualized revenue, leaving every other category in the dust.
Legal AI? A few hundred million. Support chatbots? Maybe half that. Healthcare? Still mostly pilot phase. The gap isn’t just big it’s an order of magnitude.
From my point of view, this makes perfect sense. Coding has the clearest ROI. If an AI tool can make a developer 20% more productive, you can measure that in hours saved, features shipped, bugs caught. Enterprises can justify a $20–$50 per user per month subscription instantly. Legal and support are messier outcomes are harder to quantify, workflows are less standardized, and the cost of a mistake is higher.
What’s interesting is that this $3 billion figure is still just scratching the surface. GitHub Copilot alone is on track for $300–400 million in ARR, and there are dozens of competitors. The market is growing fast, but it’s also consolidating around tools that generate measurable productivity gains. The “wow” factor of ChatGPT is fading; the “show me the savings” era has begun.
For investors and builders, the message is clear: focus on verticals where the value is easy to measure. Coding is the beachhead. Accounting, data analysis, and financial modeling could be next. But legal and healthcare will take longer regulation and risk aversion are real barriers.
I’m not saying don’t build for those sectors. But if you want revenue today, follow the money. And right now, the money is in making developers faster. $3 billion and counting. That’s not a trend it’s a land grab.
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