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Evidence item

The 2026 Harvard Business School working paper reports that AI-native firms are smaller and flatter, with organizational differences concentrated in firms embedding AI into products. DIRECT_TEXT

Authenticity UNVERIFIED · extraction UNVERIFIED · independence group none (unreviewed) · created seq 10359

Source: AI-Native Firms · locator {} · excerpt hash sha256:1436c9e0e2d22bdfbfeee9fd605076df2b6a5307c7d73831acdfb257f5ae31f6

Exact excerpt
We find that AI-native firms are 25% smaller, half a seniority level flatter, and substantially more expert-dense than non-AI firms in the same industry and cohort, yet they carry comparable valuations. These organizational differences are concentrated among firms that embed AI in their products: about two-thirds of AI-native startups in our data build AI directly into what they sell, and the headcount and hierarchy gaps relative to non-AI peers are largest in industries where the pre-AI workforce delivered services to customers.

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