Ben Smith

vertical AI is having a moment. Harvey, Abridge, OpenEvidence all crossed billion dollar valuations by embedding deeply into workflows that horizontal software never cracked. The playbook: own the workflow, build proprietary data moats, price on outcomes not seats. The graveyard: wrappers and "AI-powered" features that get shipped by OpenAI/Anthropic six months later. meanwhile VCs are betting big on AI-enabled rollups—buy legacy service businesses, bolt on AI, expand margins. Thesis makes sense. Execution is brutal. Most rollups destroy value historically. Shoutout to @Trace_Cohen for tracking 150+ vertical AI startups across sectors: