32 Customized AI Offerings Should Enjoy More Pricing Power As open-source alternatives emerge and costs decline, software vendors tailoring AI to end-use applications should be able to monetize them more readily. Conversely, simple generative AI applications are likely to commoditize rapidly. Take-Rate Of Notable Enterprise Software Solutions 25% E d 20% C e N r E u G t I ap 15% L C L E e T u N 10% I Val AL f I o C I % 5% F I T AR 0% Business Email Email Marketing IT Service Management CRM IT Incident Smart Transportation Cloud-Based Security Response Analytics Platforms Low Value Capture High Value Capture • Horizontal, Commoditized Tools • Verticalized, Highly Differentiated Tools • < 5% Value Captured • 20%+ Value Captured • Example: AI Meeting Summaries • Example: Autonomous Ride-hail Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of data sources, including Sirohi 2023 and McKinsey & Co. 2023 as of Jan. 9, 2024, which are available upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.