There’s been a lot of chatter lately, especially on LinkedIn, about the so-called “death” of AI. Disappointment around GPT-5’s incremental progress has led some to declare that AI has peaked, that the hype has passed, and that it’s time to move on.
This narrative is not just premature. It misunderstands how foundational technologies evolve.
Phase One: The Hype Curve
Every major technology follows a predictable trajectory. Initial breakthroughs capture the public imagination, driving massive expectations and early adoption. Then comes the inevitable backlash when early use cases stall, limitations surface, and expectations recalibrate. AI is now squarely in that second phase. And that’s a good thing.
We’ve reached the point where the real work begins. Not in generic demos or one-size-fits-all assistants, but in the development of practical, embedded, industry-specific solutions.
Phase Two: The Vertical Shift
The future of AI won’t be defined by general-purpose chatbots. It will be shaped by narrow, high-value applications deeply integrated into specific industries: healthcare, legal, construction, logistics, education. This verticalization of AI is where real impact is emerging.
We’re already seeing early winners: tools that automate underwriting in insurance, draft contracts in legal, optimize construction workflows, or triage patient queries in healthcare. These aren’t broad consumer apps. They’re enterprise-grade, workflow-native solutions solving measurable problems.
In short: AI is moving from novelty to infrastructure.
Phase Three: Quiet Transformation
As this evolution continues, AI will become less visible and more essential. We won’t talk about “AI in healthcare” any more than we talk about “cloud in SaaS.” It will be the underlying capability that powers a new generation of operational efficiency and product innovation.
The teams that win will be those who combine deep domain expertise with AI tooling, not those who simply wrap LLMs in shiny interfaces.
Final Thought
Despite what you might read in your LinkedIn feed, the conversation isn’t about whether AI is over. It’s about where the real value is going to be created and who’s positioned to build, fund, or acquire it.
We believe that vertical AI is the next engine of growth in enterprise software. The question isn’t whether AI has slowed down. It’s whether you’re looking in the right place.