Nowadays we dive into the world of vertical AI agents and their transforming potential. We interviewed Arjun Bhalla, who is an expert in this space and is enthusiastic about the revolutionary implications of AI.
Arjun has more than 10 years of experience in building software and AI companies at technology companies, such as ServiceNow, Adobe and much more during his career in management advice at Kearney. He graduated from the University of Michigan and has a deep passion for building game-changing software products and business models.
What exactly does vertical AI mean?
Arjun: Vertical AI refers to AI systems that are tailored to specific industries, functions or tasks within an organization. Imagine a vertical AI agent who replaces an entire team within a company. These agents will understand the nuances of a specific vertical vertical-such as healthcare, finance or logistics and deliver results that AI tools for general purposes simply cannot match. They will be more efficient and capable, and that is why I think we are about to see a huge influx of new unicorns into this space.
How has the history of technology, especially the early days of Saas, influenced the growth that we now see in vertical AI?
Arjun: You can actually draw a direct line from the early Saas revolution to where we are with AI today. When Cloud and Mobile left, there was a huge opportunity for startups. But if you look at the billion dollar companies that emerged, they fell into three categories. The first were obvious consumer products – things like E -mail, agendas and photos. But the established operators – Google, Amazon – were owned by those markets. The second category was consumer ideas that nobody predicted, such as Uber or Airbnb. Startups won there because the established operators did not realize the potential until it was too late. The third was B2B Saas, where we saw the establishment of hundreds of companies. Now exists the same kind of chance with vertical AI.
How do you think the rise of vertical AI will change how startups work, especially when it comes to assuming?
Arjun: We are already starting to see the impact of LLMS and vertical AI agents in the way startups think about assuming. Traditionally, as startups scale, the number of employees required tend to grow at the same pace as income. But vertical AI can change that. Startups no longer have to hire thousands of people in sales, marketing or customer success roles. Instead, they need more engineers who can build and maintain these AI-driven systems. You could have a unicorn company with only 10 employees, who perform most activities through AI agents. I think we are at the start of a revolution where AI agents will replace entire teams.
Will the impact of AI be the same for all companies, or is it cheaper for vertical companies?
Arjun: Vertical AI will definitely have a huge advantage over generalized AI. For example, if you think of the software tools used by companies, they are often awkward and complex because they try to do too much. That is where vertical AI will shine. It will enable companies to replace the “sink” approach with highly specialized solutions. For example, vertical AI can be the key to make wage systems much more effective, something that has traditionally been an inefficient process.
What is your vision for vertical AI agents who move forward?
Arjun: I believe that we are about to see a new wave of vertical AI -one horns. Just like SaaS disrupted traditional software, vertical AI is ready to do the same for the old guard of business software. These agents will replace entire teams in companies, making the activities more efficient, more specialized and more cost -effective. The opportunities are huge, and this is just the beginning. We are at the point of something really revolutionary in the technical world, and vertical AI agents will form the core of all this.
It is clear that vertical AI is something that we have to keep an eye on in the coming years. It will be a wild ride!
Safeguard: The views and opinions in this article are exclusively those of the interviewee and do not reflect the views or opinions of current or earlier employers. This content is only for informative purposes and is not intended to represent or endorse a certain company, organization or product.
