The article discusses the emerging trend of Vertical AI (VAI) and its potential impact on various industries. VAI refers to the integration of Artificial Intelligence (AI) into specific vertical markets, such as healthcare, finance, or retail. The author argues that VAI has the potential to revolutionize these industries by providing more efficient, personalized, and effective solutions.
The article highlights two types of players in the VAI market: new AI-native applications and existing Vertical SaaS leaders. New AI-native applications are startups that focus on developing innovative AI-powered solutions for specific vertical markets. Existing Vertical SaaS leaders, on the other hand, are established companies that have built a presence in their respective industries and are now looking to integrate AI into their offerings.
The author suggests that both types of players will coexist in the VAI market, with new AI-native applications driving innovation and disruption, while existing Vertical SaaS leaders leveraging their customer relationships and proprietary data to provide more value to their customers. The key differentiator between these two types of players is their ability to access proprietary industry data, effectively train large language models against those datasets, and package those models via applications that deliver tremendous utility with fast time-to-value for customers.
The article also highlights the importance of distribution in the VAI market. Vertically focused companies must work to gain direct and high-NPS relationships with end customers, which is often predicated on establishing deep and long-lasting customer relationships.
Some key points from the article include:
- The emergence of Vertical AI (VAI) as a new trend in the tech industry.
- Two types of players in the VAI market: new AI-native applications and existing Vertical SaaS leaders.
- New AI-native applications driving innovation and disruption, while existing Vertical SaaS leaders leveraging their customer relationships and proprietary data to provide more value to their customers.
- The importance of distribution in the VAI market, with vertically focused companies needing to gain direct and high-NPS relationships with end customers.
Overall, the article provides an overview of the emerging trend of Vertical AI and its potential impact on various industries. It highlights the importance of innovation, customer relationships, and proprietary data in the VAI market, and suggests that both new AI-native applications and existing Vertical SaaS leaders will coexist and compete in this space.
