Vertical AI Agents: The next wave of Aussie startups

By Shaun Symm, May 08, 2025
An abstract futuristic representation of an AI Agent
Australia has a proud track record of producing world-class SaaS and marketplace companies. But the ground is shifting again, and the founders who move early will capture the value.
We believe the next breakout startups will be vertical AI agent businesses, and we want non-technical founders with deep domain expertise to build them with us.

What Is a Vertical AI Agent?

A vertical AI agent is an application that sits on top of large language models (LLMs) such as ChatGPT, Claude, Gemini or open-source alternatives, then layers on:
  • Proprietary, industry-specific data
  • Workflows and domain knowledge most people outside the field don’t know
  • Automation capabilities (APIs, custom code) tailored to that niche

The result is an agent that thinks and acts like a experienced insider answering questions, completing tasks, and making decisions faster (and often more accurately) than a human generalist or a generic LLM prompt.

Horizontal AI: “Draft me a legal contract.”
Vertical AI: “Draft a two-page SaaS Master Service Agreement for a Sydney-based fintech, automatically pulling pricing tiers from Xero and inserting AU consumer-data-rights clauses.”

Why Now?

  • Model maturity: The latest ChatGPT and Claude models handle nuanced language and reasoning out of the box.
  • Falling costs: API prices continue to drop; agent frameworks (LangGraph, CrewAI, Semantic Kernel) accelerate time-to-market.
  • Data abundance: Even the most traditional sectors (mining, ag-tech, construction) now have CRMs, sensor feeds, and process docs begging to be turned into training data.
  • Talent mismatch: Many Australian industries have deep domain experts without the technical resources to build agents.

If you need more proof, read this report on the expected growth in the AI Agent market.

Founder Must-Haves for Vertical AI Startup

Building a successful Vertical AI Agent startup requires a specific blend of insight and vision. While many startup fundamentals apply, these elements are particularly crucial in this specialised domain:
  1. Insider Knowledge — You’ve spent years on the ground; you know the lingo, workflows, and every painful inefficiency.
  2. A Pointy Problem — Think “reduce wharf-side inspection time by 70 %,” not “make shipping better.”
  3. A Simple, Non-Technical Vision — You can white-board the dream workflow in plain English.
  4. Data Access (or a Plan to Get It) — Agents need fuel. You'll know what data you need and how to get it.

The Founder Mindset That Will Help You Get Ahead

Beyond the nuts-and-bolts requirements listed above, the qualities below consistently separate founders who merely launch from those who truly scale, regardless of the venture being an AI agent or any other kind of business.
Niche FocusA tightly scoped use case in a specific vertical, not a boil-the-ocean AI toolkit.
Learning VelocityYou gather feedback early and pivot based on data. You have no ego about being wrong.
GSD MindsetYou’re ready to sell, onboard pilot customers, and iterate aggressively.
Customer ObsessionYou’re willing to spend hours in discovery calls, shadow end-users, and measure success in solved pain points, not vanity metrics.
Resilience & AdaptabilityStartups can be a roller-coaster; you stay calm, re-plan quickly, and keep motivated through any setbacks.
GSD MindsetYou’re ready to sell, onboard pilot customers, and iterate aggressively.

Niches Ripe for Vertical AI Agents in Australia

The following ideas were generated by AI so we can't confirm if they're good or not. But, if you know your industry, you'll know if a problem or inefficiency you've seen is a large problem.
  • Agri-finance: instant credit scoring for farm-equipment loans
  • Mining compliance: automated site-inspection and reporting agents
  • Aged-care staffing: roster optimisation that understands award rules
  • Renewable-energy quoting: rapid feasibility studies pulling live grid data
  • Theatrical set design: an agent that speeds up the process of designing and building sets for stage productions and exhibitions

Ready to Build the Future?

Vertical AI agents aren’t hype. They’re the next step in software specialisation. If you’re an Australian founder who sees a glaring inefficiency in your industry, we would love to talk.

Australian AI Agent Developers

Launch Lab are Sydney and Canberra based startup developers and AI developers.

We've built more than 45 startups with non-technical founders including Saas, 2-sided marketplace and social products across fintech, medtech, edutech, real estate tech, B2C and other industries.

If you need product design or technical help building a product or a startup please contact us.

This blog post was created by a human with help from ChatGPT o3, Gemini 2.5 Pro and Midjourney.
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