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artificial intelligence

Vertical-specific AI tools outperforming horizontal AI platforms

Timeframe: 2023-2025

What's Changing

Generic AI writing tools are being displaced by specialized tools built for specific use cases and workflows

Driving Forces

Generic tools create commoditized experiences

Vertical tools can build specialized features and workflows

Niche tools easier to market and position

Professional/educational contexts need specialized compliance features

Winners

  • Vertical AI tools with specialized workflows
  • Tools with compliance/safety features for professional use
  • AI tools integrated into existing professional software

Losers

  • Generic AI writing platforms
  • One-size-fits-all AI tools
  • AI tools without distribution moats

How to Position Yourself

1

Focus on specific user workflows rather than general capabilities

2

Build features that generic tools can't easily replicate

3

Integrate deeply with existing professional tools

4

Develop compliance and safety features for regulated industries

Early Signals to Watch

Vertical AI tools raising funding at higher multiples than horizontalProfessional software companies building AI features in-houseRegulatory guidance on AI use in specific industries

Example Implementation

Jenny AI started as generic writing tool but succeeded by focusing specifically on academic essay writing with plagiarism checking, citation formatting, and student-appropriate assistance levels.