Vertical AI Agents Could Be 10X Bigger Than SaaS

TL;DR

Vertical AI agents represent a new computing paradigm analogous to the SaaS boom triggered by XMLHttpRequest. The speaker predicts 300+ billion-dollar companies will be built in this category, each replacing both software and the human teams that operated it, making them potentially 10× larger than their SaaS predecessors.

Key insights

• The SaaS boom was catalyzed by a single technical unlock: browsers adding the XMLHttpRequest function (Ajax) in 2004, enabling rich internet applications.
• Three buckets of SaaS opportunities emerged: (1) obvious mass consumer products where incumbents won (Docs, email, maps), (2) non-obvious mass consumer products where startups won (Uber, Airbnb, DoorD
• Incumbents avoid B2B verticals because each requires deep, patient understanding of obscure regulations and workflows (e.g., payroll, dental billing) that is not worth their focus.