This Bessemer Venture Partners post talks about three different business models for vertical AI: Copilots, Agents and AI enabled services. You may recall that I talked about AI agents in my November newsletter. They also provide business guidance for vertical AI applications with 10 Principles for Building Strong Vertical AI businesses.

This article from Unite.ai gives a good explanation of how vertical SaaS software has evolved into vertical AI software. It also includes some good examples including feedzai which provides solutions to the financial service industry, Vue.ai for retail businesses and PathAI for the health industry specifically pathology applications. I would suggest looking at these businesses, specifically the industries section and solutions section of their websites to see how they are addressing these specific verticals.

This article from Andreesen Horowitz is a good case study in the accounting industry. One company they mention is Adaptive which has an AI solution in a challenging vertical within accounting, specifically construction accounting. It is an SMB solution which automates the complex processes in construction accounting.

I'm sure we'll all hear more soon on Vertical AI software. It is an area that has a lot of interest from venture firms.