The parallels between early SaaS and Verical AI Agents
SaaS: Cloud-based software solutions designed for broad, general use.
Vertical AI Agents: Autonomous AI systems designed for specific business tasks and functions.
Just like how SaaS companies revolutionized the software industry, vertical AI agents are set to do the same for business operations. SaaS was a game-changer because it moved software from being something you installed on your desktop to something you could access through a web browser—making it accessible, scalable, and much more affordable. This shift allowed companies to scale quickly without needing large, expensive IT teams to maintain their software.
Vertical AI agents are following a similar trajectory. Just as SaaS moved from broad applications to niche solutions tailored to specific industries, vertical AI is moving from general-purpose automation tools to highly specialized systems. These AI agents are designed to handle specific business functions—whether it’s customer support, quality assurance, or recruitment—better, faster, and more efficiently than human teams. As the technology advances, these agents will not only automate tasks but replace entire teams in ways that were previously unthinkable.
| SaaS (Software as a Service) | Vertical AI Agents | |
| Scope | General-purpose tools for various industries and needs. | Specialized solutions for specific business functions (e.g., customer support, QA, recruitment). |
| Business Impact | Reduces the need for on-premise software, making it scalable. | Replaces entire teams, automating functions and improving efficiency. |
| Customization | Often limited in customization for specific business needs. | Highly customizable to individual business processes or industry requirements. |
| Flexibility | Flexible, but usually requires integration with other tools. | Focused on automating one task or process deeply and effectively. |
| Example | CRM software, project management tools. | AI recruitment voice agent automating debt collection calls. |
Why large companies fell behind in B2B SaaS adoption and how SMEs can benefit
When SaaS emerged, many large companies were slow to adopt it, and this created an opening for smaller, nimble startups to capitalize on new opportunities. At the time, traditional enterprise software was monolithic and required heavy installations, making it expensive and cumbersome. The big tech companies of the time, such as Microsoft and Oracle, were invested in these traditional systems and were hesitant to pivot to cloud-based software.
Similarly, as vertical AI agents continue to evolve, large companies are likely to face challenges in scaling these specialized systems. While they have the resources, the challenge lies in understanding the nuances of different industries and business functions. Smaller startups, with their ability to focus on one specific vertical and rapidly innovate, will be the ones that drive the growth of vertical AI.
How employee counts in businesses will change
One of the most significant impacts of vertical AI agents will be the change in employee counts across industries. Traditionally, many business functions required large teams to perform repetitive and time-consuming tasks. With the advent of vertical AI, these tasks can now be automated, drastically reducing the number of employees required to operate these functions.
For example, in quality assurance (QA), large teams of testers are typically required to run tests and ensure products meet the necessary standards. With AI-powered testing, these teams can shrink by 70-90% as AI agents take over the testing process. Similarly, in customer service, AI-driven chatbots and voice assistants can replace hundreds or thousands of customer support agents, handling everything from simple inquiries to complex support requests.
In recruitment, AI agents are already automating resume screening, conducting interviews, and assessing technical skills, reducing the need for large HR teams. The same goes for debt collection, where AI voice agents are now handling the bulk of the work, negotiating payment terms and reaching out to customers—tasks that once required a large, low-wage workforce.
These changes will allow companies to scale efficiently without adding headcount, making them more agile and competitive.
The argument for more vertical AI unicorns
The potential for vertical AI agents to create massive companies is immense. When we look back at the rise of SaaS, it’s clear that specialized solutions can lead to the creation of many unicorns. SaaS companies succeeded by offering vertical solutions—whether in HR, project management, or sales—that were tailored to specific needs. Vertical AI agents will follow a similar path.
Rather than a one-size-fits-all solution, vertical AI agents will be focused on automating specific business functions. This specialization allows for deeper optimization and greater efficiency. For example, an AI agent built specifically for customer support can handle complex workflows that general-purpose systems simply cannot. In this way, vertical AI agents are poised to create not just a few successful companies but hundreds, each focused on a different industry or business function.
The market for vertical AI agents could easily be worth $300 billion or more, as companies look to automate entire departments, reduce their reliance on human workers, and scale more efficiently.
Current examples of vertical AI use cases in companies
We’re already seeing vertical AI agents making an impact across industries. Quality assurance is one area where AI is proving its worth. AI-driven agents are already capable of handling test cases, identifying issues, and learning from previous tests to improve their performance. In customer support, AI agents are now handling everything from basic queries to more complex customer service tasks, improving response times and reducing human error.
Recruitment is another area being revolutionized by AI. AI agents can screen resumes, conduct interviews, and even assess candidates’ skills, making the hiring process more efficient and accurate. Similarly, debt collection is being automated with AI-powered agents that can manage large volumes of accounts, negotiate payment terms, and collect overdue debts, all without human intervention.
These examples demonstrate that vertical AI agents aren’t just theoretical—they’re already in use, improving business operations and reducing the need for human employees.
The rise of AI voice calling agents
AI voice agents are also making waves, particularly in industries like debt collection and customer service. Traditionally, these roles required a large team of agents making calls and interacting with customers. However, AI voice systems can now handle these tasks with greater efficiency and scalability. These AI agents can place calls, engage with customers, and negotiate terms—all with natural, human-like speech.
As the technology improves, AI voice agents will become more accurate and realistic, allowing businesses to replace entire call center teams. This shift will significantly reduce labor costs and improve operational efficiency, particularly in industries that rely heavily on voice-based interactions.
What is the right vertical for you as a business owner?
For business owners looking to create their own vertical AI solutions, the key is to focus on specific business functions and find areas where AI can offer a clear improvement over current processes. The most successful vertical AI agents will be those that automate time-consuming tasks or replace entire manual intensive business functions that traditionally required large teams.
Vertical AI is the future of business automation
The future of business operations is clearly shifting toward AI-powered automation, and vertical AI agents are at the forefront of this change. These specialized agents are capable of replacing entire teams across a variety of business functions, allowing companies to scale more efficiently and reduce operational costs. As the technology continues to evolve, vertical AI agents will open up new opportunities for founders and entrepreneurs, creating a wealth of $300 billion companies in the process.
We are just at the beginning of the vertical AI revolution, and as AI continues to improve, the impact on employee counts, business operations, and industries at large will be profound. The future is bright for vertical AI, and businesses that embrace this change will be the ones leading the charge into a more efficient, scalable, and automated future.