OpenAI is the most popular choice among AI app developers; the company dominates the space in large language models, but market dynamics are changing and its customers are exploring alternative options, TechRadar reports, citing research from cloud platform Vercel.
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A survey of 656 developers conducted by Vercel found that 87% use OpenAI models and 83% use the company’s API. Developers now use an average of two AI model providers, and 60% have switched providers in the past six months. Nearly a third of enterprises use DeepSeek, while only 10% of respondents use Microsoft’s large language models.
AI-powered product development is built around clear use cases, and app creators prioritize tools over teams: 45% of companies lack dedicated AI departments, and 57% report no AI experts in the leadership team. 75% of customer-facing apps prioritize AI-related features; 39% use chatbots for support.
Cost management is an important aspect: over 70% test models manually and spend less than $1,000 per month. In terms of cost reduction, only 14% of respondents train their models, with 60% using Retrieval-Augmented Generation (RAG) and vector databases instead. The focus on tools, due to the “overhype” around AI, received an average rating of 6.4 out of 10 among respondents; the question of whether AI will transform the survey respondents’ industry in the next 12 months received a rating of 7.7 out of 10.
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