Will Vertical AI Agents Replace SaaS?

Specialised AI agents could easily be replacing many of the current software solutions we use today.

Will Vertical AI Agents Replace SaaS?
"This idea of doing things in programmatic ways that can have multiple variations in them, I think, is the difference between assistants and agents,"

Nickle LaMoreaux, IBM's chief human resources officer

I've worked for Software as a Service (SaaS) companies for the last 15 years. They represent my working life. And yet, it seems they won't be my future. I am reading ever more articles about their demise due to AI agents. We will no longer need platform solutions that took years to build to undertake a host of different tasks, but instead, we'll use vertical AI agents that are built for specific jobs. They also only take a few days to create, so if you need to do something else, another agent can be spun up in next to no time. Because vertical AI agents are focused on specific tasks, they are far more accurate than general AI bots that we're more familiar with today, such as ChatGPT or Claude.

It's unlikely that regular business folk will have the technical skills in the short term to build these systems ourselves, so I imagine we're going to see a rapid expansion of platforms (yes, likely SaaS companies, the irony) that will create no and low-code capabilities for non-technical individuals. Take a moment and think about your job role. Think about all the areas where there is some routine process or a back-and-forth. Vertical AI agents can resolve these tasks. If you can give an agent the parameters representing acceptable commercial terms, you could deploy it to handle the entire negotiation process for you over email. And once the deal is agreed upon, the agent can approve contracts and start the necessary processes.

It's certainly an exciting development, even if it's hard to picture how all of this would work practically.


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Curated News

OptimHire's AI Recruitment Agent Secures $5 Million Funding

OptimHire, established in 2019, has successfully raised a $5 million seed funding round to enhance its AI-driven hiring platform. The company's AI agent, OptimAI Recruiter, automates various aspects of the recruitment process, including sourcing candidates, conducting screening calls, and scheduling interviews. This automation has notably reduced the hiring timeline from months to just 12 days and has decreased recruitment fees from 20% to 6% of a new hire's first-year salary. In 2024 alone, OptimHire facilitated 8,000 hires. The recent funding is earmarked for further advancing its AI capabilities to meet the evolving needs of the global workforce.

Emergence of Manus: A Fully Autonomous AI Agent

Chinese startup Monica has launched Manus, an autonomous AI agent capable of independently executing complex real-world tasks without direct human intervention. Manus distinguishes itself by proactively initiating tasks, analyzing data, and dynamically adapting its actions in real-time. Its multi-domain performance allows it to handle diverse tasks across various fields, such as analyzing financial transactions and screening job applicants. The introduction of Manus has sparked discussions about the implications of fully autonomous AI, particularly concerning ethics, privacy, and employment security.

Launch of Devin AI

Cognition Labs has introduced Devin AI, an autonomous AI assistant designed to perform software engineering tasks without human assistance. Devin AI can code, debug, plan, and problem-solve using advanced machine learning techniques. Users can prompt Devin in natural language, and the AI responds by outlining its plan and implementing the code. Its capabilities have been demonstrated in tasks such as website creation and developing computer vision models.

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Thanks for reading, and see you next Friday.

Simon,


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