Vertical AI Startups: Solving Industry-specific Problems by Combining AI and Subject Matter Expertise

Provide a full-stack fully-integrated solution to the end customer problem from the interface that solves for the need all the way down the stack to the functionality, models, and data that power the interface. This ecosystem is much more defensible over time than just proprietary data or models. Designing the right product interface requires subject matter expertise, and owning the interface allows you to instrument it and gather proprietary data. Then you're able to build models that drive high-value functionality in a virtuous cycle between the interface and the data. You control the'data value chain' and have pricing power and defensibility over time.