How Generative AI is Influencing Vertical SaaS

How Generative AI is Influencing Vertical SaaS

It’s amazing to see how fast this technology is evolving and how it’s revolutionizing various industries. At Netsmartz, we’ve been keeping a close eye on this progress, especially in the vertical SaaS space, which is our key focus. Despite the rapid advancements, it’s interesting to note that generative AI hasn’t made a huge impact on vertical SaaS just yet.

In this blog, we will share some thoughts on how companies building vertical SaaS products can approach generative AI and what the future might hold.

So, let’s dive right in!

A Quick Overview Of Vertical SaaS


Vertical SaaS caters to a particular industry’s needs. It’s like personalized software that zooms in on specific customer groups. Now, compare that with horizontal SaaS, which tackles universal problems applicable to various customers. Take customer relationship management, for instance; you can handle it broadly like Salesforce or HubSpot do, or you can specialize, diving deep into specific fields. It’s all about tailoring software to fit like a glove for a specific set of users.

The First Wave Of Generative AI Is Horizontal

The initial surge of generative AI was all about going wide, covering a lot of ground. These first-gen generative AI companies focused on versatility, working across different industries. They took the basic models and revamped how text and images are created, starting from scratch. Imagine them as pioneers reshaping the way we generate content!

Company Product  Last Financing Round
Runway ML video editing $50M, December 2022
ImagenAI photo editing + post-production $30M, December 2022
Descript media editing $50M, November 2022
Mem note-taking $23.5M, November 2022
Jasper AI copywriting $125M, Oct 2022
Typeface1 copywriting  $65M, Feb 2023

If you check out those generative AI market maps, you’ll notice a bunch of startups all aiming for wide-ranging, everyday applications. And hey, if you step back and look at the big players like Adobe, Notion, Canva, and Slack, you’ll see them hustling to weave generative AI into their current products.

Generative AI Companies Focused On Verticals Are On Their Way

Soon, we’ll see generative AI services tailored specifically for certain industries. Why? Well, think of it as applying that customer-first approach we love in vertical SaaS to the generative AI era.

Now, let’s break it down. Why haven’t we seen these vertical-focused products yet? There are a couple of reasons.

1. First off, even if these advanced models like GPT4 can do some pretty impressive things, they’re not the whole package. To generate top-notch construction plans, financial reports, or legal documents, you need specialized data sets. These datasets fine-tune the models, making the output super precise. Plus, you’ve got to train these apps using techniques like Reinforcement Learning from Human Feedback – the same tech that brought ChatGPT to life. This way, the apps consistently deliver great results without any weird glitches.

2. When you’re focusing on a specific customer group, you’ve got to nail the product, the user experience, and how you introduce it to the market. That’s where brilliant product and business teams come into play. They’ll be the driving force, bringing generative AI right into the heart of vertical SaaS. These AI tools must build on top of foundation models, making them as essential as databases, cloud services, and big data. The key? Assembling a dream team of applied AI developers who understand the specific needs of their customers.

How Should Existing Vertical Saas Companies Think About Generative AI?

How do you dive in without disrupting your existing product roadmap? Here’s the lowdown in a nutshell.

1. First up, tackle the easy wins. Look inward. Use generative AI for your internal stuff – summarizing meetings, creating documents, or running analytics. Efficiency is the name of the game here, and there are tools out there ready to roll.

2. Next, think about your go-to-market strategy. Generative AI is shaking up marketing big time. Content marketing, email marketing, ad copy – it’s all fair game. Oh, and customer support? Huge opportunity there, too. There are already solutions in the market that can seamlessly fit into your game plan.

3. Now, when it comes to your core product, flip the script a bit. With generative AI, users become more like prompters and editors of AI systems. So, tech comes first. Think about how this tech can transform your software experience. What parts can be enhanced? How can these changes bring more value to your customers? It’s about blending the human touch with the power of AI. Exciting times, right? Get ready to transform your vertical SaaS game!

What Are The Relevant Generative AI Applications For Vertical SaaS?

1. First off, forms.

Do you know how filling out forms in software can be a real snooze-fest? Well, generative AI can swoop in and make that tedious work a thing of the past. Think about companies dealing with security and compliance – they’re already on it, making life easier for users.

2. Next, summarizing.

These big language models aren’t just good at creating new content; they’re masters at distilling heaps of information into neat, digestible summaries. Entire companies are cropping up based on this skill, which could be a game-changer for specific SaaS workflows.

3. Now, human-computer interactions.

Instead of navigating through menus and clicking buttons, users can chat naturally, like talking to a friend. These language models get human text, opening up a completely new way for users to interact with software. It’s like taking your software experience to a whole new level.

Should You Hop On The Trend Too?

Generative AI is poised to make a massive impact on vertical SaaS. According to experts, machine learning will soon become a must-have feature in most workflow SaaS products. Looking ahead, new companies embracing a generative AI-first approach could even outpace established players in certain industries.  So don’t lag behind your competitors and hire AI developers to shape the future of your  SaaS.

At Netsmartz, we eagerly anticipate this evolution, especially in challenging fields like health tech, where accuracy is paramount. We’re keen on exploring innovative solutions in this space. If you’re working on integrating generative AI into vertical SaaS, we’re all ears!

Supercharge your SaaS with Netsmartz’s AI 360 Services!

Contact Us Today


How Generative AI is Influencing Vertical SaaS
Parth Gargish
Published on
November 14, 2023

Kickstart Your Project With Us!


Let's Build Your Agile Team.

Experience Netsmartz for 40 hours - No Cost, No Obligation.
Connect With Us Today!

Please fill out the form or send us an email to