GraphedMinds
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Trends
artificial intelligence

Vertical-specific AI tools outperforming horizontal AI platforms

Timeframe: 2023-2025

What's Changing

Generic AI writing tools are being displaced by specialized tools built for specific use cases and workflows

Driving Forces

Generic tools create commoditized experiences

Vertical tools can build specialized features and workflows

Niche tools easier to market and position

Professional/educational contexts need specialized compliance features

Winners

  • Vertical AI tools with specialized workflows
  • Tools with compliance/safety features for professional use
  • AI tools integrated into existing professional software

Losers

  • Generic AI writing platforms
  • One-size-fits-all AI tools
  • AI tools without distribution moats

How to Position Yourself

1

Focus on specific user workflows rather than general capabilities

2

Build features that generic tools can't easily replicate

3

Integrate deeply with existing professional tools

4

Develop compliance and safety features for regulated industries

Early Signals to Watch

Vertical AI tools raising funding at higher multiples than horizontalProfessional software companies building AI features in-houseRegulatory guidance on AI use in specific industries

Example Implementation

“Jenny AI started as generic writing tool but succeeded by focusing specifically on academic essay writing with plagiarism checking, citation formatting, and student-appropriate assistance levels.”

Related Knowledge

Idea

AI-Powered Academic Writing Assistant

Students struggle with writer's block, proper citations, and ensuring originality in academic writing

Same episodeComplements
Framework

Zoom-In Pivot Framework

A strategic pivot where you narrow focus from a broad, mediocre product for everyone to an excellent product for a specific niche that already shows traction within your existing user base.

Same episode
Framework

Influence the Influencers Strategy

A customer acquisition strategy focused on winning over community leaders and moderators first, who then authentically promote your product to their communities.

Same episode
Playbook

Acquire first 100 customers through authentic community engagement

100+ paying customers acquired organically with strong retention, community leaders actively recommending your product

Same episode
Mental Model

Market Selection Over Execution Excellence

The idea that picking the right market with good timing matters more than having the best product or execution

Same episode
Belief

Success is the sum of your attempts

Don't view failed attempts as wasted time - they're building blocks for future success

Same episode