3 industries ripe for AI disruption

Fragmented industries — characterized by a mix of corporate chains, independent operators, and regional players — present significant opportunities for disruption by AI-driven B2B SaaS ventures.

The dental and veterinary sectors have already exemplified this potential over the last year, with their market structures and increasing adoption of AI technologies.

• Dental: the dental sector comprises large corporate chains, numerous independent practices, and regional groups. This fragmentation creates challenges in standardizing care and operational efficiency. AI technologies are beginning to address these issues by enhancing diagnostic accuracy and streamlining workflows. For instance, Overjet’s FDA-cleared AI technology overlays dental images with color-coded indicators to highlight issues like cavities and exposed nerves, improving patient understanding and communication. Another example is Pearl AI, looking to disrupt dental care by detecting dental conditions in x-rays, improving diagnostic precision and patient communication.

• Veterinary: similarly, the veterinary field includes corporate groups, sole practitioners, and regional chains, leading to a fragmented market landscape. AI applications are emerging to transform veterinary care by automating medical documentation and improving diagnostic processes. A survey by Digitail and the American Animal Hospital Association found that 38.7% of veterinary professionals are interested in incorporating AI tools into their practices, recognizing potential benefits in revenue growth, employee satisfaction, and client retention. You’re already seeing entrants into this space like Dodo, who use AI to automate administrative tasks for specialty clinics, starting with veterinary practices.

Who’s next?

Look for fragmented markets with corporates, independents, and regional players competing; strong local and regional dynamics; predictable recurring revenue; and consolidation opportunities.

My bet is that business customers in these industries are ripe for AI tools:

1. Specialty Clinics (e.g., dermatology, plastic surgery operators): this sector often consists of independent and regional operators. AI can enhance diagnostic precision and patient management, leading to improved outcomes and operational efficiencies.

2. Pharmacies: with a mix of large chains and independent pharmacies, this industry can benefit from AI in inventory management, personalized medicine, and customer service enhancements.

3. Health & Wellness (spas, hair salons, nail salons, tanning studios): predominantly composed of small businesses, these sectors can leverage AI for appointment scheduling, customer relationship management, and personalized marketing strategies.

The common thread across these industries is their fragmented nature, which presents challenges in standardization and efficiency. AI-driven B2B SaaS solutions can address these issues by providing scalable tools that enhance operational effectiveness and customer engagement.