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23 Apr 2024

Verticalized AI is More Important than Ever

Informa Tech's Applied Intelligence Group, in partnership with Romi Mahajan, CEO, ExoFusion
Verticalized AI is More Important than Ever
As AI has exploded in recent years, the landscape of transformative technology has dramatically changed. But how does it need to evolve and in what direction in order for AI's true potential to really shine?

What a difference four years has made with artificial intelligence. From deep learning breakthroughs to NLP advancements and of course the meteoric rise of generative AI, the digital landscape as we once knew it has changed dramatically. The concept of verticalized AI is now a leader for tailored solutions, recognising that effective AI applications must be finely tuned to the specific nuances and demands of particular industries or verticals for true AI potential to be achieved.

Informa Tech’s Applied Intelligence Group spoke with Romi Mahajan, CEO ExoFusion who shared his views on the importance of vertical AI in this opinion piece.

“In an article I wrote for Information Week called “Vertical AI is the New Black”, I mention that generic or “rhetorical” AI is no longer interesting; without a clear scenario-based or vertical use case, and mentions of AI were just so much fluff.  While many things have changed and AI has accelerated the technology economy at a pace almost unimaginable before, some things have stayed the same. Too many organizations still pay lip-service to AI without informing customers exactly how they’ll benefit from it. Simply put, vertical AI still needs more attention.

The AI “Platform” companies – Nvidia, Microsoft, Google and a few others—have created a baseline for AI.  It is up to smaller and more focused companies to take AI the last mile - into the realm of the customer and even the customers’ customer. After polling over one hundred organizations, I’ve found about a dozen companies that are on top of their game and have done exactly that.  A few examples are:

  •        Sapient AI- Applies AI and Machine-Learning to curate diagnostic data from Nuclear Fusion test devices to help Fusion companies simulate, plan, and ultimately accelerate the path to Commercially Viable Fusion.  Full disclosure:  They are in partnership with my company, ExoFusion.
  •        Advaiya -Built an AI-based, LLM-based Legal query solution for a customer.  The legal vertical is highly compliance-driven and regulated so it was necessary to put this deep vertical consideration into the foreground for the build. 
  •        Quantarium- Uses AI to examine the entire US residential real estate footprint for valuations, analytics, alerts, and predictive modeling.  AI allows the company’s solution to lead the market in both accuracy and breadth. 

The combination of platform companies and last-mile developers and solution providers is powerful and ushers in an era of useful AI.  Reality not rhetoric.

At its core, the essence of vertical AI lies not just in sophisticated algorithms, but in the deep understanding of industry intricacies. It's the recognition that AI's true potential can only be unlocked through collaboration with industry experts and direct engagement with end-users, ensuring that the AI solutions are not just technologically advanced, but intricately woven into the fabric of the vertical they serve.

Without a verticalized play and deep context, the question is will we really unlock it’s full potential and see real AI success?”

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