What is Vertical SaaS?
DALL-E: Curt Doty
The history and future of Vertical SaaS (Software as a Service), AI wrappers, the GPT store, and the overall direction of the business of AI form an intricate narrative of technological advancement, market evolution, and the increasingly pivotal role of artificial intelligence in shaping the future of businesses across various sectors. Here's a summary that captures these elements:
History of Vertical SaaS
• Origin and Evolution: Vertical SaaS refers to cloud-based software solutions tailored for specific industries or sectors. Unlike horizontal SaaS, which serves a broad range of industries with general tools (e.g., email, CRM), vertical SaaS focuses on the unique needs of specific industries (e.g., healthcare, real estate, finance). Its history dates back to the early 2000s, gaining momentum as industries sought specialized software that could cater to their specific operational needs.
• Growth Factors: The growth of vertical SaaS was propelled by increasing internet penetration, cloud computing advancements, and the need for industry-specific compliance and functionality. Businesses recognized the value in solutions that could address their niche requirements without extensive customization. What began as large enterprises developing tools internally to solve their unique problems led to an entire industry of businesses creating scalable cloud-based solutions that they could install across entire industries.
AI Wrappers and the GPT Store
• AI Wrappers: An AI wrapper refers to a layer of software that allows for the integration of AI functionalities into existing systems or applications. It essentially 'wraps' AI capabilities in a way that makes them accessible and usable within other software environments. This concept has gained prominence with the rise of AI and machine learning technologies, enabling businesses to leverage AI without needing to develop complex AI algorithms from scratch. It essentially follows the same concept as white-labeling SaaS, allowing a complex system like AI to have its functionality extended into other deployments and environments.
• The GPT Store: The GPT store represents a marketplace or ecosystem surrounding models like OpenAI's Generative Pretrained Transformer (GPT) series. It facilitates the distribution, access, and utilization of GPT-based applications and services. The GPT store concept underscores the commoditization and accessibility of AI technologies, allowing developers and businesses to integrate advanced AI capabilities into their products and services easily. It allows anyone to create usable, GPT-powered tools with their specific criteria and workflows within the OpenAI interface and creates a wealth of opportunity for specific task completion software to be created beyond the scale of what OpenAI could do alone.
Future of AI in Business
• Integration and Specialization: The future of AI in business points towards deeper integration of AI across all levels of operation and increased specialization. Vertical SaaS platforms will likely incorporate more AI functionalities tailored to their specific industries, enhancing efficiency and enabling more sophisticated data analysis and decision-making capabilities.
• Ethical and Regulatory Considerations: As AI becomes more embedded in business operations, ethical use and regulatory compliance will become increasingly important. Businesses will need to navigate challenges related to data privacy, bias in AI algorithms, and ensuring that AI applications adhere to industry-specific regulations.
• Innovation and New Business Models: The continuous evolution of AI technologies will drive innovation in products, services, and business models. The GPT store and similar ecosystems will evolve, offering more specialized and advanced AI tools. This will open up new opportunities for businesses to create value and differentiate themselves in the market. There will be a cottage industry of AI implementation Vertical SaaS companies that allow for the deployment of any model within their specific industry expertise.
• AI Democratization: The trend towards democratization of AI, where advanced AI tools and capabilities become accessible to a wider range of businesses and developers, will continue. This will lower the barrier to entry for leveraging AI, enabling smaller businesses to compete more effectively with larger players. The winners that arise after the spread of a new technology are the ones who figure out how to manage and systematize the human labor that brackets around the innovation.
“Digital intelligence makes logical sense to apply to established sectors of the economy and their most challenging or routine workflows by augmenting human intelligence or replacing human physical inputs. That said, digital intelligence is quickly approaching the more miraculous and those creators demonstrating thoughtful governance will be the true leaders as known implications become real.” – Mitchell Posada
The business of AI is on a trajectory of rapid evolution, characterized by the deepening integration of AI into various aspects of business operations, the proliferation of vertical SaaS solutions, and the emergence of platforms like the GPT store that facilitate access to AI technologies. As businesses navigate this landscape, they will be challenged to adopt AI responsibly and innovatively, shaping a future where AI not only drives efficiency and profitability but also addresses broader societal and ethical considerations.
Michael Yates, an AI expert, summarizes it this way, “Managing the introduction of a new technology and the reaction to how it changes the way humans work is critical for future success. This has been the same challenge for every tool, machine, and system that has ever been invented and AI is no different.”
About the Author
Curt Doty specializes in branding, product development, social strategy, integrated marketing, and UXD. He has extensive experience on AI-driven platforms MidJourney, Adobe Firefly, ChatGPT, Colossyan, Murf.ai, and DALL-E. His legacy of entertainment branding: Electronic Arts, EA Sports, ProSieben, SAT.1, WBTV Latin America, Discovery Health, ABC, CBS, A&E, StarTV, Fox, Kabel 1, TV Guide Channel, and Prevue Channel.
He is a sought after public speaker having been featured at Mobile Growth Association, Mobile Congress, App Growth Summit, Promax, CES, CTIA, NAB, NATPE, MMA Global, New Mexico Angels, Santa Fe Business Incubator, EntrepeneursRx and AI Impact. He is now represented by Ovationz. His most recent consultancy RealmIQ helps companies manage the AI Revolution.
© 2024 Curt Doty Company LLC. All rights reserved. RealmIQ is a division of the Curt Doty Company. Reproduction, in whole or part, without permission of the publisher is prohibited. Publisher is not responsible for any AI errors or omissions.
