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GLOSSARY

What is Vertical AI?

Complete definition and guide to Vertical AI (Artificial Vertical Intelligence)

Definition

Vertical AI (also called Artificial Vertical Intelligence or AVI) is a policy-native, continuously learning enterprise intelligence system that fuses enterprise data, domain knowledge, and human expertise into a single reasoning system. Unlike general-purpose AI that tries to do everything, Vertical AI goes deep into a single domain, understanding industry rules, risks, regulations, and workflows at expert-level performance.

Key Characteristics

  • Built from real expert knowledge: Trained by Subject Matter Experts (SMEs) with decades of industry experience
  • Domain-specific: Focuses on one industry or vertical (healthcare, insurance, logistics, etc.)
  • Production-ready: Deployed at enterprise scale from day one, no months of fine-tuning required
  • Auditable: Provides full traceability, citations, and SME attribution for every decision
  • Compliance-built: Understands industry regulations, standards, and requirements from the ground up
  • High accuracy: Achieves 85-95% accuracy in specialized tasks vs. 60-70% for general AI
  • Living intelligence: Continuously improves through expert feedback and real-world application

Vertical AI vs Horizontal AI

Horizontal AI (General AI)

  • • Trained on everything
  • • Broad but shallow knowledge
  • • 60-70% accuracy in specialized tasks
  • • High hallucination rates
  • • No domain expertise
  • • Limited compliance understanding

Vertical AI

  • • Trained on expert knowledge
  • • Deep domain expertise
  • • 85-95% accuracy in specialized tasks
  • • Low hallucination rates
  • • Industry-specific understanding
  • • Built-in compliance

Vertical AI Use Cases

Healthcare

Prior authorization, diagnosis assistance, compliance

Insurance

Underwriting, claims processing, risk assessment

Logistics

Freight exception resolution, route optimization

Manufacturing

Quality control, compliance, safety protocols

Finance

Risk assessment, regulatory compliance, fraud detection

Energy

Operations optimization, safety protocols, maintenance

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