Vertical artificial intelligence (AI) is currently one of the most promising areas for investment, as this tool is adapted to the specifics of individual industries, according to the founder of the Tokarev Foundation, IT entrepreneur and investor Sergey Tokarev. Over the next 2-3 years, it is highly specialised solutions embedded in real business processes that will create the greatest value in the AI market. The technology is designed to perform tasks in specific areas, which makes it attractive to many industries.
“Horizontal artificial intelligence, on the other hand, is more of a general-purpose tool. Its versatility is not only an advantage but also a disadvantage. As basic models evolve, many of them are likely to become obsolete and unnecessary,” says Sergey Tokarev.
Why vertical AI?
In 2025, approximately 60% of AI investment was directed towards large AI labs. 90% of these funds went to mega-rounds of a small group of companies, creating difficulties for most venture funds in building a diversified and repeatable strategy.
Vertical AI differs significantly from horizontal AI. In contrast, vertical AI attracts capital across different regions and industries, and competitive barriers arise due to the deep integration of similar solutions into customers’ operational processes.
The IT entrepreneur highlights three areas in which vertical AI has already proven its value:
- Procurement. A separate niche for small and medium-sized businesses is emerging in this area – instead of cumbersome ERP systems, companies can work with new AI platforms with smart planning and decision support.
- Law. The legal sector is rapidly developing solutions for intellectual property, litigation and business services – from automated case review and analysis to contract preparation and patent search.
- Finance. Investors are looking closely at auditing and accounting tools that check documents, prepare reports, and conduct audits autonomously. An example is the start-up Kobalt Labs from the Roosh Ventures portfolio.
“The next 2-3 years will determine the leaders in the vertical AI category, as existing players are moving too slowly and horizontal AI solutions struggle to adapt at the same pace,” said Sergey Tokarev.
According to the founder of the Tokarev Foundation, when such systems become mandatory in financial, procurement and legal processes, the cost of changing suppliers will increase and markets will quickly consolidate. Therefore, for venture investors, this niche is currently perhaps the only one in which success is determined not by the size of capital, but by the depth of expertise.
