The Future of Vertical AI in the GPT-5 Era

Foundational Models Are Only Getting Better

Even with all the passionate feedback on GPT-5, foundational models are going to get dramatically better and cheaper. As they move deeper into the enterprise, they’ll inevitably start taking over enterprise and vertical workflows.

‍Does This Kill Vertical AI?

I’ve been asked: If the foundational players are moving vertically, doesn’t that mean vertical AI is doomed?

My answer: No.

Unless you’re just a vertical AI wrapper on top of someone else’s foundational model.

But vertical AI companies will be created across all industries.

Why Vertical AI Still Wins

The vertical AI winners will tackle a very specific, high‑value domain problem where it wouldn’t make sense for foundational model players to spend calories.

To survive and win, vertical AI companies will:

1. Be foundation‑model agnostic.

2. Treat models as interchangeable commodities and swap them in or out based on performance and cost.

3. Integrate deeply with legacy systems in the industry, and integrate with everyone else.

4. Master time‑series data: continuously back up and update the time‑series database, understand deltas over time, and deliver accurate predictions and pattern recognition.

5. Own the ETL process: clean, transform, and curate data for training.

6. Collect proprietary data and esoteric tribal knowledge unique to the vertical.

7. Embed ball‑in‑court workflows where industry conversations happen and decisions are made.

8. Deliver enterprise‑grade security and privacy as a core feature.

9. Show their math: no black‑box magic; show exactly how they got to the answer, no hallucinations.

What It All Means

Foundational models will take on the easy stuff like corporate handbooks and HR policies, but the rest will be handled by companies that know their vertical better than anyone and do the right thing for their customers.