How AI-Powered Vertical SaaS Is Taking Over Traditional Enterprise SaaS

To date, every customer has recouped their investment in Copperleaf. The data Copperleaf can analyze and advise on allows for significant optimizations and efficiencies. ai chatbot saas With real-time analytics, the value of Copperleaf becomes even more significant. Overall, it is a targeted investment, allowing IFS to embark on a new growth spurt.

Getting data out of legacy systems and into a modern lake house was key to being able to build AI. “If you have data or data integrity issues, you’re not going to get great results,” he says. Once the data was organized, moving it to where it was needed was another challenge, he says. According to Deloitte’s Q3 state of generative AI report, 75% of organizations have increased spending on data lifecycle management due to gen AI. The company still has that in place, with 130-plus licenses available to its internal users, who use the standard chat interface, and there are no API costs or integrations required.

Looking at the growth the company is experiencing, the term is perhaps justified. Last year saw a 33 percent growth in revenue, with cloud sales actually up a whopping 46 percent. To maintain that growth, the company invests in new technology and makes acquisitions on a regular basis. Important today for SaaS solutions and platforms is their AI strategy. The platform features Guardium AI Security, which is software designed to manage security risks and data governance requirements for AI data and AI models. The module discovers AI deployments, oversees compliance, mitigates vulnerabilities, and protects sensitive data in AI models, IBM stated.

The Path Forward: From Generic To Vertical SaaS, Powered By AI

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And this internal information would be augmented with data stored in the Salesforce platform and sent to the AI as part of a fine-tuned prompt. The answer then comes back into Salesforce, and the employee can look at the response, edit it, and send it out through the regular Salesforce process. “We had integration tools at our company but they were older, outdated tools,” he says. Getting the kind of large-scale integrations necessary for gen AI would have required significant and costly upgrades. Organisations can deploy Freddy AI Agent without the need for coding or model training by simply directing it to existing materials or websites, allowing the agent to crawl and learn on its own. Techzine focusses on IT professionals and business decision makers by publishing the latest IT news and background stories.

Nevertheless, we believe that IFS’ current AI strategy could cause this success to disappear as quickly as it has come. After all, it is an AI strategy with more or less the handbrake on. IFS needs to pick up the pace; the competition is betting heavily on generative AI, and IFS is already about a year behind.

There might be an extra cost for the new functionality, though, but the vendors are the ones dealing with any potential infrastructure challenges. Whereas, AI agents are autonomous flows, which can produce human-like conversations with very little setup or configuration. It doesn’t have to be as extensive as rule-based or intensive as that of chatbots, but can create much more delightful conversational experiences with far less configuration,” he added. The introduction of Freddy AI Agent comes at a time when many enterprises are adopting AI agents to streamline their workflows. According to a report by Gartner, by 2028, 33% of enterprise software applications will incorporate agentic AI, enabling 15% of daily work decisions to be made autonomously. According to the new CEO of IFS, Mark Moffat, the company is phenomenal.

As more pilots go into production, and the production projects expand to all potential users, the infrastructure challenges are going to hit in a bigger way. And finding a solution that works today is not enough, since gen AI technology is evolving at a breakneck pace. “You need to be nimble enough to switch as it gets upgraded,” Thota says. The other main AI compute use is that of inference, when the trained AI model is used to actually answer questions. “Unless you’ve got an ability to ask your customers to wait for the model to respond, inference becomes a problem,” says Sharma. As a result, Spirent uses AI for test data within its products to help with customer support and internal productivity, says Bostrom.

IFS is competing with the giants of the world, which is difficult

They want software that understands the intricacies of their industry and can adapt to their specific needs. Unlike traditional SaaS, which is built for broad use cases, vertical SaaS is deeply tailored to specific industries. By using AI, it can offer real-time insights, automation, and optimisations that solve problems unique to each sector. AI is certainly not without its limitations and challenges, and understanding these limitations is important for ensuring they complement human expertise, creativity and skill.

It wants to use AI, algorithms, and machine learning to focus primarily on detecting anomalies and problems, automating schedules, and closing gaps in a supply chain. IFS mainly wants to develop AI that applies to the industries they focus on. This hyper-targeted approach allows vertical SaaS to deliver tangible business outcomes rather than generic efficiencies. AI powers this shift by enabling platforms to adapt to industry-specific challenges, automate routine tasks, and provide insights at a scale and speed that was previously unattainable.

Get started in AI by reaching out to small or mid-sized businesses that need workflow improvements, offering a pilot project to show how AI can make a difference. AI can be an amazing tool for brainstorming, researching and outlining content like blog posts, newsletter articles and long-form ChatGPT social media posts, which you can then flesh out with your own unique insights. For niche marketing teams, these tools can provide fresh angles, new perspectives and creative ideas on topics you have covered extensively to reinvigorate future content and ensure it stays relevant.

Focus on a specific niche, like e-commerce or healthcare, where you can use AI to deliver targeted results quickly. The potential for AI to reshape industries and create entirely new revenue streams is undeniable. AI isn’t perfect, but it does have the ability to accelerate repetitive, time-consuming tasks and bolster decision making. AI is not a master at writing code yet, but it has become a powerful tool for developers to write code significantly faster.

“Freddy AI Agent is a game-changer for organisations looking to accelerate customer service and employee service, fast. As a software vendor, you shouldn’t follow every hype because you will make large investments with a poor return on investment (ROI). You can foun additiona information about ai customer service and artificial intelligence and NLP. For example, IFS cited big data, a hype in which organizations have invested a lot but, in many cases, have seen little result.

By building chatbots to handle routine queries, you free up human agents for complex issues, improving overall customer satisfaction. AI-powered chatbots have become essential for businesses aiming to improve customer support and streamline service. Starting an AI chatbot service lets you design, deploy, and manage chatbots that serve different industries, from retail to finance to hospitality. “Companies are often aware of AI’s potential but lack the know-how to implement it effectively,” Linnes explains. By creating tailored AI solutions, you bridge this gap, helping businesses save time and resources. Whether it’s real estate, coding, graphic design or retail, artificial intelligence (AI) has seemingly endless potential to transform the way businesses operate and innovate.

Discover the essential strategies and imperatives to create a data an… Windows 10 users may experience problems logging into Azure Virtual Desktop, Teams, and Outlook. NetSuite is taking full advantage of Oracle technology to build out t… It has made good acquisitions that have strengthened its portfolio and accelerated its growth. It has shown substantial growth in several segments and grabbed market share.

• “However, each public cloud service provider, private data center, and hybrid cloud environment uses different network and security operational models.
• Now that the AI hype is slowly blowing over, solutions with AI features become available, and we can evaluate where everybody is at and what AI will mean for software and organizations.
• The potential for AI to reshape industries and create entirely new revenue streams is undeniable.
• Managing storage, networking, and compute resources while optimizing for cost and performance even as platforms and use cases all evolve rapidly is a concern, but as gen AI gets smarter, it might be a means to help companies.

Offering AI content services helps companies generate SEO-optimized articles, marketing copy, and social media content that aligns with their brand. Using content production tools, you can keep clients’ demand met without compromising quality. Spirent’s decision to use a public cloud for data storage is a popular approach.

In addition, AI-driven platforms optimise inventory management by forecasting demand, automating restocking, and identifying potential supply chain disruptions. In marketing, they help tailor promotions, predict customer lifetime value, and enhance conversion rates with precision targeting. In the software sector, AI integration is unlocking new efficiencies, from streamlining software development to enhancing customer support to driving creativity in marketing efforts. Embracing tools that help improve efficiency has allowed our smaller team to focus on supporting our clients and given us an edge over much larger competitors. The possibilities for building a profitable AI business are vast, and the market is ready. Whether it’s through automation, marketing, customer engagement, content creation, or developing a SaaS tool, AI-driven businesses are solving real problems and creating value across industries.

De Caux admitted that while they have more ambitions and plans on the roadmap, the underlying infrastructure to take AI to the next level is still being developed. IFS, like many other organizations, is developing a knowledge graph. A knowledge graph consists not only of data, but also of context where the data comes from, how it should be read and interpreted.

Instead, it leverages deep domain knowledge to understand the unique challenges faced by specific industries. Linnes sees this as a high-potential ChatGPT App option for those with tech expertise. “The beauty of SaaS is that you’re creating something people use daily,” he says.

Copperleaf offers the ability to do extensive analysis on data that then helps make strategic business decisions. Copperleaf naturally focuses on somewhat more long-term decisions. Think about investing in new markets, managing risk, or helping to measure and meet sustainability goals. With 83% of IT leaders stating workflow automation is necessary for digital transformation, the most effective software then isn’t the one that demands the most attention. It’s the one that becomes invisible, operating in the background and enhancing workflows without users even noticing. Target businesses spending heavily on human-powered agencies and show them how much more efficient AI can be.

Software companies are using AI to improve user experience and optimize the performance of their websites. AI can give companies the power to create highly personalized experiences for visitors by analyzing behavior, preferences and history to tailor content, improve engagement and ultimately drive conversion rates. Nathan Miller, Founder and CEO of Rentec Direct, property management software for real estate professionals. That relevant content could include thousands of pages of information such as compliance rules for specific countries.

Freshworks is researching and applying the best of both worlds where people and AI can work together,” said Murali Swaminathan, Chief Technology Officer at Freshworks. The AI agents can be deployed within minutes and have resolved an average of 45% of customer support requests and 40% of IT service inquiries, said the company in a statement. However, as a software vendor, you should also assess when something is hype and when it sets a new reality or standard.

We previously wrote that IFS combines best of suite and best of breed in one platform; in that article, we also explained the platform in detail. “However, each public cloud service provider, private data center, and hybrid cloud environment uses different network and security operational models. The Guardium AI Security module also helps secure AI systems by alerting customers when sensitive business data used for training AI is publicly exposed, unprotected, or vulnerable to theft, IBM stated.

AI development needs to be faster

The challenge isn’t mind-blowing, says its CIO Chandra Venkataramani, but it does mean the company has to be careful about keeping costs under control. “We don’t want to get carried away with technology and go crazy with it,” he says. Specifically, TaskUs needs to move more compute and data back and forth. While everybody can use ChatGPT, or has Office 365 and Salesforce, in order for gen AI to be a differentiator or competitive advantage, companies need to find ways to go beyond what everyone else is doing. That means creating custom models, fine-tuning existing models, or using retrieval augmented generation (RAG) embedding to give gen AI systems access to up-to-date and accurate corporate information.

It also states that their customers are not open to it; they mainly want proven technology. Therefore, IFS says it’s cautious about AI features and use cases. In part, this suits IFS just fine and can be seen as an excuse because it does not have the capabilities and resources to develop AI as fast as the competition. On the other hand, AI adoption in general in the market is certainly not overwhelming yet, so there is some truth to what IFS is saying. Developing new technology, especially in AI, has never been more challenging than it is today. The knowledge needed is very scarce, the costs involved in developing AI features are incredibly high, and it takes many software developers to make the necessary infrastructure changes.

• Most enterprises have spent years building a complex web of legacy systems, data repositories, and software platforms.
• “The beauty of SaaS is that you’re creating something people use daily,” he says.
• The window of opportunity to establish expertise and build a brand is wide open.
• “We knew we wanted to embed AI in our existing applications,” he adds.

An employee who works safely and is more productive is also worth more to the company. In addition, IFS customers argue that Poka also creates more bonding between staff and the organization. Customers can opt to integrate other modules into the broader IBM Guardium Data Security Center platform as well. The real power of AI lies in its ability to automate not just individual tasks but entire workflows. AI-powered vertical SaaS doesn’t just provide insights; it takes action.

“You’re just using their application and paying for the user license,” he says. By providing your information, you agree to our Terms of Use and our Privacy Policy. We use vendors that may also process your information to help provide our services.

But if there is a lot of profit to be made or costs to be cut, that may start to change. According to Caux, IFS is not ready for AI agents because the underlying infrastructure is simply not yet complete. However, it is on their roadmap, as is developing their own smaller AI models. According to Caux, IFS is already buying industry-specific datasets to start developing its own industry and domain-specific AI models. With Poka, organizations can help factory employees and people in the field work better, more efficiently, and more safely.

That’s already a significant improvement compared to some other systems, but compared to IFS competitors, it’s pretty minor. Many major SaaS players and competitors of IFS have already implemented so-called autonomous AI agents and offer capabilities to interact with AI by voice. They are also very busy enriching their datasets with context and metadata, thus widening the possibilities of AI. IFS has about 60 AI use cases rolled out and about 300 in development.

And that means companies have to invest in infrastructure for training and deploying these systems. Based on what we have now heard from IFS, as far as we are concerned, the company should try to step up its game. Otherwise, the company could well go from being ahead to being (significantly) behind. A reliable solution, a lot of customer contact, a good relationship, and industry knowledge are certainly strong qualities. If a competitor’s solution can soon use AI to make employees work two, three, or four times as efficiently, the IFS customer will move to the competitor. Granted, that customer is generally not hugely progressive regarding new technologies.

Coupling AI with a knowledge graph makes the output much better and more reliable. IFS currently determines from the user’s screen what the context of a question posed to the Copilot is. Especially compared to competitors who have build a whole knowledge graph for their datasets.

She also writes science fiction novels, edits a sci-fi and fantasy magazine, and hosts a YouTube show. I hereby consent to the processing of the personal data that I have provided and declare my agreement with the data protection regulations in the privacy policy on the website. Several mid-sized companies, including Bchex, Porsche eBike, Hobbycraft, and Live Oak Bank, have already integrated Freddy AI Agent with Freshdesk and Freshservice.

Provide clients with smart, practical solutions that simplify their work and open up new avenues for growth. Identify your potential niche, gather initial feedback from prospective customers, then create a landing page and build a waitlist. Some of the benefits we’ve seen as a result of AI-augmented software engineering are when it comes to writing example code or explaining complex code segments. AI is extremely capable at both of these tasks and can be a huge time-saver across development teams. Instead of digging through manuals or relying on senior developers to answer questions, developers can use AI-powered tools to help them troubleshoot and move forward on projects, creating a more efficient workflow.

The parties IFS competes with are not afraid to burn a few billion dollars on these AI innovations. In fact, IFS and many other vendors have been doing this for much longer. This is a form of predictive AI, or what we also sometimes call traditional AI. The hype of the past two years has mostly revolved around generative AI, which, combined with predictive AI, can create whole new possibilities. Another key module is Guardium Quantum Safe, which is designed to help customers protect their sensitive data and harden their environments against quantum-enabled cyber risks. AI-powered vertical SaaS is effective because it doesn’t attempt to be everything for everyone.