Machine Learning Times
Machine Learning Times
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5 months ago
Vertical AI – Why a Vertical Approach is Key to Building Enduring AI Applications

Originally published in Greylock, Dec 6, 2023. 

The rise of Vertical SaaS in the past decade has demonstrated the power of industry-specific software, producing dozens of winners like Toast, Shopify, Procore, and ServiceTitan.

Yet there are still many markets underserved by Vertical SaaS: foundational industries with intrinsic barriers to technological disruption (e.g. unstructured data, constrained TAMs, slow sale cycles, low annual contract values, and tricky incumbents), and sectors that are either just emerging or undergoing a major transformation (e.g. the electrification of energy.)

But now, two key developments have made it possible to build software that serves these outliers: 1) the rise of artificial intelligence that can tackle unstructured data and 2) the redefinition of Vertical SaaS as Vertical Software.

Starting with the data: In earlier tech eras, Vertical SaaS could only be applied to companies with modern tech stacks (those with clean, structured data in systems of record and databases).

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11 thoughts on “Vertical AI – Why a Vertical Approach is Key to Building Enduring AI Applications

  1. Pingback: The Importance of a Vertical Approach in AI Development #VerticalAI

  2. Before knowing about the game pizza tower, I was a person who only liked action games and dropped out of school because I didn’t like knowledge. Thanks to the quality player community, I was on the right path.

  3. Vertical AI is perfect for critical applications where precision is essential because of its targeted approach, which makes it possible for it to produce results that are precise, accurate, and contextually relevant to geometry dash. Furthermore, vertical AI’s unique focus and design enable higher data specificity and accuracy, making it a useful tool in sectors with complex and specialized requirements. Furthermore, vertical AI is well-suited for addressing particular issues and challenges within particular domains due to its efficiency, rapid deployment, and customizability.


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