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Paper · arXiv

Going Headless? On the Boundaries of Vertical AI Firms

Vertical AI firms in accounting, law, healthcare, procurement, and similar domains historically bundled workflow, domain logic, and accountability into a single application. General-purpose AI agents are now unbundling that package, prompting founders and investors to advocate "going headless": cede the workflow and interface to agents and expose domain expertise as callable services. This article argues that going headless is correct for some firms and destructive for others, and that the latter often cede their value capture inadvertently through architectural choices that look like interface decisions. This is a boundary question, and the answer turns on distinguishing the interface bo...

AuthorsMuhammad Zia Hydari, Farooq Muzaffar
Primary categorycs.AI
Published18 May 2026
Last updated at source18 May 2026
cs.AI
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