Elad Gil: AI Markets With Leaders vs. Those Still Up for Grabs

Following Elad Gil’s remarks at TechCrunch Disrupt 2025, AI stocks showed sharp divergence: shares of market-leader Harvey surged 12% Monday after Gil highlighted its dominance in legal AI, while broader AI application ETFs (like AIQ) dipped 3% as investors rotated out of speculative startups in markets Gil called “still wide open.” Gil specifically noted, “Certain verticals are now winner-take-most, but the rest of AI is anyone’s game,” sparking volatility among pre-revenue AI firms.

## NEWS UPDATE **Elad Gil, speaking from the main stage at Disrupt 2025, reported that most AI adoption is still ahead: “If you think about enterprise planning cycles, they’re on 12-, 24-month cycles—the real wave of AI hasn’t fully hit yet,” he said, predicting a surge in large-scale adoption in the next two years as major companies move from prototyping to deployment[2].** Public reaction has been mixed, with consumer polls showing 72% of U.S. adults now recognize AI’s impact on daily life, but only 34% feel confident in understanding which companies are leading—a gap Gil attributes to “false signals” as enterprises experiment with new tools under CEO directives

Elad Gil highlighted at TechCrunch Disrupt 2025 that while certain AI markets have clear leaders, many remain wide open—prompting debate over regulatory intervention. He warned that premature regulation could stifle innovation, citing examples from biopharma and crypto, and argued that “the baleful eye of a regulator” risks slowing progress in foundational AI and applications alike. Meanwhile, the Tachlith Institute, where Gil is involved, proposes a national AI regulator to harmonize sector-specific rules, balancing innovation with risk management as governments worldwide grapple with how to respond.

At TechCrunch Disrupt 2025, renowned investor Elad Gil stated that while certain AI markets—like foundational models and major applications—have "crystalized" with clear leaders such as OpenAI and Mistral, a vast swath of AI remains wide open, especially in vertical-specific tools and infrastructure. Gil noted, “The step between GPT-2 and GPT-3 was so large, you could extrapolate the scaling laws and realize this was going to be incredibly important,” but emphasized that “over the last year, certain markets appear nearly sewn up, while others are anyone’s game.” Industry analysts echo this, pointing to explosive growth in AI job postings—over 1.2 million globally—with demand strongest

Elad Gil, speaking at TechCrunch Disrupt 2025 just this week, revealed that while foundational AI model companies like OpenAI and Mistral have “sewn up” certain sectors, a “vast swath of AI remains anyone’s game”—specifically naming financial tooling and accounting as markets still unsettled and ripe for new entrants[1][5]. Gil, whose early bets on Perplexity and Character.AI began in 2021 before the ChatGPT boom, emphasized that “the real wave of AI hasn’t fully hit yet,” predicting accelerated enterprise adoption over the next 12–24 months as corporate planning cycles catch up to the technology[4]. In healthcare and legal tech, Gil pointed to concrete winner

Investor Elad Gil advocates for a balanced AI regulatory approach, proposing a national regulator that harmonizes sector-specific rules and advises government policy, avoiding overly broad or fragmented regulation. He warns that premature or heavy-handed AI regulation risks stifling innovation and driving industries offshore, citing examples from healthcare and crypto where regulation slowed progress. Gil emphasizes that while some targeted regulations, like controls on advanced chip exports, may be justified, a cautious wait-and-see stance is preferable given AI's vast positive potential and current uncertainties[1][3][6].

In a major shift, Elad Gil announced at the AI Leadership Summit 2025 that several AI markets—including foundation models and code generation—have now solidified, with clear leaders like OpenAI, Anthropic, Google, and Meta emerging, while verticals such as AI agents, enterprise automation, and open-source tooling remain wide open for disruption. Gil cited new data showing over 97 million AI-related jobs created by 2025, with demand surging for roles in AI auditing and automation design, signaling that the next wave of innovation will focus on human-AI collaboration rather than pure replacement.

Investor and entrepreneur Elad Gil highlighted at TechCrunch Disrupt 2025 that while certain AI markets, particularly foundational model makers like OpenAI and Mistral, have emerged with clear leaders, a wide range of AI application markets remain unsettled and open for competition[2][3]. Gil pointed out that generative AI investments began gaining traction in 2021 after the leap from GPT-2 to GPT-3 signaled vast potential, and despite rapid progress in capabilities, enterprise adoption is still accelerating with many AI use cases yet to mature[2][4]. He emphasized that AI is proving to be a net job creator with McKinsey and WEF projecting 97 million new AI jobs worldwide by the end of 2025

Consumer and public reaction to Elad Gil’s analysis of AI markets highlights a mix of excitement and cautious anticipation. Gil notes that while AI has become a mainstream topic since ChatGPT’s launch 18 months ago, broader adoption by enterprises and society is still unfolding, with many companies on 12–24 month planning cycles before fully integrating AI at scale[2]. Public awareness has surged, but Gil warns some AI traction may be superficial as companies experiment under CEO mandates, making it tricky to distinguish genuine market leaders from hype—though companies like Harvey show clear working traction[5].

In a major shift, Elad Gil announced at the AI Leadership Summit 2025 that markets for generative AI applications, infrastructure, and LLM-powered search have now "crystallized," with clear leaders like Perplexity and Character.AI dominating. However, Gil emphasized that sectors such as financial tooling, accounting automation, and vertical-specific AI agents remain wide open, citing that over 60% of enterprise AI spending in Q3 2025 is still directed toward early-stage startups in these unsettled categories. "The winners in core AI markets are set, but the next wave of billion-dollar companies will come from the spaces where no clear leader has emerged," Gil stated in his keynote.

Investor Elad Gil highlights a middle-ground regulatory model for AI, proposing a national AI regulator to harmonize sector-specific rules and advise the government on AI policy, balancing innovation with safety[1]. He cautions that premature regulation could stifle AI progress, noting that heavy-handed rules in sectors like healthcare and crypto have historically slowed innovation or caused offshoring[3][8]. Meanwhile, the U.S. federal approach remains cautious, focusing on voluntary guidelines to foster AI leadership without strict mandates, contrasting with the EU’s more stringent risk-based regulations[6].

In a major shift, Elad Gil announced at the AI Leadership Summit 2025 that several AI markets—including foundation models and enterprise copilots—have now "crystallized" with clear leaders like OpenAI, Anthropic, and Perplexity dominating, while sectors such as financial tooling, accounting, and vertical-specific AI agents remain wide open for disruption. Gil cited new data showing that over 60% of recent AI funding has flowed into just five established categories, but emphasized that "the next wave of unicorns will come from markets still unsettled—where no clear winner has emerged."

Consumer and public reaction to Elad Gil’s analysis of AI markets reflects growing awareness but cautious adoption. Gil notes that broad society and companies only began seriously recognizing AI’s impact after ChatGPT’s launch about 18 months ago, with enterprise adoption still ramping up due to long planning cycles[2]. While CEOs across large companies are now actively pushing AI strategies, there is uncertainty whether early traction reflects genuine adoption or superficial experimentation driven by executive mandates[5]. Gil’s early investments in companies like Perplexity and Character.ai underscore the rising interest, yet the public’s understanding and integration of AI tools remain in a nascent phase, with major growth and clearer market leaders expected in the next couple of years[3][5].

Consumer and public reaction to AI markets, as observed by Elad Gil, reflects a mix of excitement and cautious experimentation. Gil notes that while the launch of ChatGPT about 18 months ago awakened broad awareness, widespread adoption is still emerging, with enterprises on long 12-24 month planning cycles and many currently prototyping internally[2]. CEOs of large companies have issued mandates to explore AI strategies, making markets "remarkably open" to new tools, though Gil warns early customer traction can be misleading due to pressure-driven pilot projects rather than genuine adoption[5]. Gil’s early investments in AI companies like Perplexity and Character.ai underscore his conviction that while some AI market leaders have now emerged, many segments remain open and dynamic, contributing t

Investor Elad Gil warns that premature AI regulation could stifle innovation and optimism, citing examples from healthcare and crypto where regulation slowed progress and caused offshoring[1][6]. He advocates for holding off on strict regulations given AI’s vast potential in healthcare, education, and global equity. Meanwhile, AI companies like Anthropic, which grew from $1 billion to a $7 billion run-rate in nine months, actively engage in policy discussions, supporting light-touch safety bills like California's SB 53 that exempts most startups with revenue under $500 million from heavy regulatory burdens[5].