A new generation of startups is redefining what it means to be “AI-native,” using artificial intelligence for everything, everywhere, all at once. These startups are embedding AI across every function and early spending patterns already reflect how AI-native work is taking shape. Analysis by a16z and Mercury across more than 200,000 early-stage firms found that about 60% of AI budgets go to horizontal tools, meaning general-purpose platforms such as assistants, creative software, and shared workspaces that can be used across roles and teams. The remaining 40% supports vertical tools designed for specific functions like finance, HR, or legal. Creative software accounts for the largest share of spend, underscoring how AI has shifted from a supportive layer to a core part of how teams execute their daily work. Alex Wu, Managing Partner at CFO Advisors, a firm that provides fractional CFO services to startups, told PYMNTS that structure is what determines AI success. “We encourage startups to create a dedicated role that’s all about testing new tools and figuring out how to implement them, an AI enablement role that scouts tools, runs pilots, and hardwires wins into workflows,” he explained. He added that this structured approach helps avoid what he calls “tool fatigue,” where teams experiment without measurable outcomes. “The real value shows up after the novelty wears off. If a tool is still being used after two weeks and has become part of a workflow, that’s when it’s creating real productivity.”