The Rundown The Slow Burn of Tariffs & AI's Infiltration of Corporate America (ft. Ara Kharazian)
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Oct 26, 2025 
Ara Kharazian, an economist at Ramp, dives into the world of tariffs and AI spending in American businesses. He analyzes data from 45,000 companies, revealing how tariffs are muted by policy complexities, with businesses adapting their supply chains accordingly. Kharazian discusses AI's rapid adoption across sectors like healthcare and construction, addressing whether it’s a bubble and the related productivity impacts. He also provides insights on the reliability of government data versus private datasets, highlighting spending patterns in cities known for corporate socializing.
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Enterprise AI Is Becoming Sticky
- AI product retention rose from ~50% in 2022 to about 80% now, showing increased stickiness.
- Average AI contract sizes jumped toward $500k and may average $1M next year, indicating enterprise-scale adoption.
Big AI Deals Outside Big-Model Firms
- Many largest AI contracts fund vertical enterprise tools, not just base model providers.
- Companies buy AI for customer agents, observability, trust, and coding tools built on model APIs.
OpenAI Leads Business Adoption
- OpenAI leads in paid business adoption, with ~30–40% of companies using it in Ramp's data.
- Anthropic captures 10–20% and is stronger in certain tech-heavy sectors, but OpenAI is the clear leader.