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JF

Jared Friedman

11/23/24

@ Y Combinator

Many startup founders overlook the potential of vertical AI agents, which are not a new concept but are gaining traction in the market.

Video

YC

Vertical AI Agents Could Be 10X Bigger Than SaaS

@ Y Combinator

Vertical AI Agents Could Be 10X Bigger Than SaaS

11/23/24

Related Takeaways

YC

Y Combinator Cast

11/23/24

@ Y Combinator

We're in the early stages of vertical AI agents, which could lead to the emergence of $300 billion companies in this space, rather than a single trillion-dollar SaaS company.

YC

Y Combinator Cast

11/23/24

@ Y Combinator

Enterprises are already accustomed to the value of point solutions, making them more likely to invest in startups offering vertical AI agents.

YC

Y Combinator Cast

05/16/25

@ Y Combinator

Many startups are still unaware of the transformative potential of AI, with only a few exploring its capabilities deeply within their organizations.

YC

Y Combinator Cast

05/16/25

@ Y Combinator

There's a wealth of startup ideas emerging now that leverage AI technology, especially in the infrastructure space for deploying AI and using agents.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Vertical agents present a significant opportunity for startup founders who have a deep understanding of a specific domain, allowing them to create agents trained for particular workflows.

YC

Y Combinator Cast

12/14/24

@ Y Combinator

The emergence of vertical AI is expected to enable a significant increase in the number of companies reaching substantial revenue, as the value proposition for these products is strong.

YC

Y Combinator Cast

11/23/24

@ Y Combinator

The early winners in the AI space may be general-purpose solutions, but vertical AI agents will emerge as industries develop and require more specialized tools.

JF

Jared Friedman

11/23/24

@ Y Combinator

I believe vertical AI agents will lead to the creation of companies worth over $300 billion, similar to the early SaaS boom.

YC

Y Combinator Cast

11/23/24

@ Y Combinator

To find a successful vertical AI startup, look for repetitive, boring administrative tasks that can be automated, as these often present lucrative opportunities.