In this podcast episode, the hosts explore the exciting rise of vertical AI agents and their potential to transform various industries, much like the impact of Software as a Service (SaaS). They highlight that, similar to how SaaS spawned numerous billion-dollar companies by meeting specific business needs, vertical AI agents could generate even greater value by automating tasks and processes within particular sectors, potentially replacing entire teams. The rapid progress of large language models (LLMs) and the growing competition among foundational models are driving this evolution. Founders are encouraged to pinpoint repetitive, administrative tasks in industries they know well as promising opportunities for AI-driven solutions.