<h2 id="8ca5" class="pw-subtitle-paragraph sd gs rn bg b se sf mp sg sh mt si sj sk sl sm sn so sp sq pv dv" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 0.92em; margin-bottom: 24px; font-weight: 400; font-family: sohne, &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; color: rgb(107, 107, 107); line-height: 28px; font-size: 22px;">From saturated domains to untapped opportunities — the data every founder needs to see before choosing their market.</h2><div><p data-pm-slice="1 1 []"><span style="color: rgb(36, 36, 36); font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px; letter-spacing: -0.003em;">I analyzed every single company in YC’s 2025 cohorts and found something shocking: the biggest opportunities aren’t where everyone’s looking.</span></p></div><div><p id="7870" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">Most AI founders are building in markets with 90+ competitors. But I discovered entire billion-dollar industries with fewer than 3 AI startups total.</p><p id="1ded" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">With this analysis, I wanted to understand:</p><ul class="" style="box-sizing: inherit; list-style: none none; color: rgba(0, 0, 0, 0.8); font-family: medium-content-sans-serif-font, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif;"><li id="87c5" class="xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 2.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">what problems people are solving,</span></li><li id="1bdb" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">what type of AI agents are being built,</span></li><li id="165c" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">which industries are the most common and get easily accepted in YC,</span></li><li id="1a16" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">which industries are oversaturated,</span></li><li id="b8ff" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">gaps(opportunities) are worth exploring,</span></li><li id="a67d" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">latest tech people are developing,</span></li><li id="6fbe" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">positioning strategies used by winners,</span></li><li id="98dc" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;"><span class="xi mn" style="box-sizing: inherit; font-weight: 700;">how to validate idea looking at the selected companies.</span></li></ul><p id="148d" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">While&nbsp;<span class="xi mn" style="box-sizing: inherit; font-weight: 700;">88% of founders</span>&nbsp;are building&nbsp;<span class="xi mn" style="box-sizing: inherit; font-weight: 700;">AI companies</span>, most are fighting brutal competition in oversaturated markets.</p><p id="337c" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">Developer tools alone attracted 94 companies — that’s one new competitor every 4 days.</p><p id="e133" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">But here’s what’s shocking: the biggest opportunities aren’t where the crowds are.</p><p id="90ab" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">We found entire billion-dollar industries with almost zero AI competition.</p><ul class="" style="box-sizing: inherit; list-style: none none; color: rgba(0, 0, 0, 0.8); font-family: medium-content-sans-serif-font, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif;"><li id="6a53" class="xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 2.14em;">Government tech has 600+ billion in spending but only 1 YC company.</li><li id="fb54" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;">Insurance processes 1.4 trillion annually with virtually no AI startups.</li><li id="e865" class="xg xh rn xi b se yf xk xl sg yg xn xo xp yh xr xs xt yi xv xw xx yj xz ya yb yc yd ye bl" data-selectable-paragraph="" style="box-sizing: inherit; color: rgb(36, 36, 36); line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; margin-bottom: -0.46em; list-style-type: disc; margin-left: 30px; font-size: 20px; margin-top: 1.14em;">Construction wastes 2 trillion yearly on delays that AI could easily prevent.</li></ul><p id="c702" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">Companies succeeding in crowded markets aren’t winning with better algorithms. They’re winning by understanding one industry deeply instead of trying to solve everything for everyone.</p><p id="4ea5" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">This complete analysis shows you exactly which markets are oversaturated, which are wide open, and how 16 companies positioned themselves to dominate despite fierce competition.</p><p id="ed04" class="pw-post-body-paragraph xg xh rn xi b se xj xk xl sg xm xn xo xp xq xr xs xt xu xv xw xx xy xz ya yb go bl" data-selectable-paragraph="" style="box-sizing: inherit; margin-top: 2.14em; margin-bottom: -0.46em; color: rgb(36, 36, 36); word-break: break-word; line-height: 32px; letter-spacing: -0.003em; font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px;">If you’re building an AI company, you’ll find this analysis super insightful.</p></div>

Inside Y Combinator: Analysis of 400+ Startups and Market Trends

<span style="color: rgb(36, 36, 36); font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px; letter-spacing: -0.06px;">Almost 90% of the companies are building with AI which clearly tells you that you’ve got to be solving problems with AI.</span><div><span style="color: rgb(36, 36, 36); font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px; letter-spacing: -0.06px;"><br></span></div><div style="text-align: center;"><span style="color: rgb(36, 36, 36); font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px; letter-spacing: -0.06px;">YC is focusing more on AI apps that are NOT assistants rather are building AI systems that completely replace expensive job functions like legal analysis, accounting, or customer service</span><span style="color: rgb(36, 36, 36); font-family: source-serif-pro, Georgia, Cambria, &quot;Times New Roman&quot;, Times, serif; font-size: 20px; letter-spacing: -0.06px;"></span></div>

<div>In today’s competitive digital marketplace, e-commerce success depends on speed, personalization, and customer experience. Shoppers expect instant responses, seamless product discovery, and real time order updates. This is where AI powered chatbots are transforming the way online stores operate.</div><div><br></div><div>AI chatbots are no longer just support tools they are sales assistants, engagement engines, and customer service agents working 24/7/365. Let’s explore how AI chatbots help e-commerce store owners grow revenue, retain customers, and scale efficiently.</div>

How AI Chatbots Help E-Commerce Store Owners Sell More, Engage Visitors, and Provide 24/7 Customer Support

<div>AI chatbots act like virtual sales representatives inside your online store.</div><div>How they drive more sales:&nbsp; &nbsp; &nbsp; &nbsp;</div><div><ul><li>Recommend products based on browsing behavior&nbsp; &nbsp; &nbsp; &nbsp;</li><li>Upsell and cross-sell related items automatically&nbsp; &nbsp; &nbsp; &nbsp;</li><li>Answer product questions instantly (price, size, availability)&nbsp; &nbsp; &nbsp; &nbsp;</li><li>Guide customers through the buying journey in real time&nbsp; &nbsp; &nbsp; &nbsp;</li><li>Instead of visitors leaving your site to “think later,” chatbots convert interest into purchases by engaging&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</li><li>shoppers at the exact moment they are ready to buy.</li></ul></div><div><br></div><div>Result: Higher conversion rates and increased average order value.</div>

AI Chatbots Increase E-Commerce Sales Through Smart Conversations

<div>Many e-commerce visitors leave because they feel lost or unanswered. AI chatbots solve this by offering instant engagement.</div><div>Engagement benefits:</div><div><ul><li>Greet visitors proactively</li><li>Help users find products faster</li><li>Provide personalized suggestions</li><li>Recover abandoned carts with reminders and offers</li><li>By keeping users engaged, chatbots reduce bounce rates and encourage shoppers to stay longer on your website.</li><li>Result: More engaged visitors and fewer abandoned carts.</li></ul></div>

Keep Visitors Engaged and Reduce Cart Abandonment

<div>One of the biggest advantages of AI chatbots is round-the-clock availability.</div><div>AI chatbots handle:</div><div><ul><li>Order status and tracking</li><li>Delivery updates</li><li>Return and refund questions</li><li>Payment and invoice queries</li><li>FAQs in multiple languages</li><li>Customers no longer need to wait for business hours. AI chatbots respond instantly, accurately, and consistently, even during holidays or peak sales events.</li></ul>Result: Happier customers and lower support costs.</div>

24/7/365 Customer Support Without Hiring Extra Staff

<div>AI chatbots can communicate in multiple languages, allowing e-commerce stores to serve international customers effortlessly.</div><div>This removes language barriers and builds trust with global shoppers, helping brands expand into new markets without additional support teams.</div><div>Result: Increased global reach and customer satisfaction.</div>

Multilingual Support for Global E-Commerce Growth

<div>Modern AI chatbots use data and machine learning to deliver personalized experiences.</div><div>They analyze:</div><div><ul><li>Browsing history</li><li>Purchase behavior</li><li>Customer preferences</li><li>Past interactions</li></ul></div><div>Using this data, chatbots tailor recommendations and responses, making customers feel understood and valued.</div><div>Result: Stronger customer loyalty and repeat purchases.</div>

Personalized Shopping Experience at Scale

<div>Yes!</div><div><br></div>API Cost Estimation (Real Usage Data – Last Month).<div><br></div><div><h3 data-start="151" data-end="169">Key Metrics:</h3>
<ul data-start="170" data-end="346">
<li data-start="170" data-end="205">
<p data-start="172" data-end="205"><strong data-start="172" data-end="199">Average daily messages:</strong> 195</p>
</li>
<li data-start="206" data-end="247">
<p data-start="208" data-end="247"><strong data-start="208" data-end="237">Total requests (1 month):</strong> ~6,000+</p>
</li>
<li data-start="248" data-end="288">
<p data-start="250" data-end="288"><strong data-start="250" data-end="272">Total tokens used:</strong> ~43.2 million</p>
</li>
<li data-start="289" data-end="346">
<p data-start="291" data-end="346"><strong data-start="291" data-end="320">Total API cost (1 month):</strong> <strong data-start="321" data-end="346">$7.62&nbsp;</strong></p></li></ul><div><b><br></b></div></div><div><div style=""><b>Important Note:</b></div><div style=""><b><br></b></div><div style=""><b>&nbsp;API cost is not based on the number of customers</b></div><div style=""><b>&nbsp;API cost is based on message usage and token consumption</b></div></div>

Can I estimate my chatbot API cost before launch?

<p data-start="2037" data-end="2084">Effective cost optimization techniques include:</p>
<ul data-start="2085" data-end="2235">
<li data-start="2085" data-end="2107">
<p data-start="2087" data-end="2107">Reply length control</p>
</li>
<li data-start="2108" data-end="2142">
<p data-start="2110" data-end="2142">Eliminating unnecessary AI calls</p>
</li>
<li data-start="2143" data-end="2167">
<p data-start="2145" data-end="2167">Smart context handling</p>
</li>
<li data-start="2168" data-end="2200">
<p data-start="2170" data-end="2200">Using cost-optimized AI models</p>
</li>
<li data-start="2201" data-end="2235">
<p data-start="2203" data-end="2235">Avoiding repeated system prompts</p></li>
</ul><div><br></div>
<p data-start="2237" data-end="2295">These strategies significantly lower monthly API expenses.</p>

How can chatbot API costs be reduced?

<div>AI tools are no longer optional for small businesses. Even with a small budget, businesses can use AI to automate tasks, improve decision-making, and grow faster in a competitive digital market.</div><div>Here are some budget friendly AI tools that small businesses can use without spending too much many have free plans or low monthly pricing:&nbsp;</div><div><ul><li>ChatGPT – Writing, support replies, ideas</li><li>Canva AI – Designs, social posts</li><li>Tidio – AI chatbot for customer support</li><li>Copy.ai – Ads &amp; marketing content</li><li>Notion AI – Notes, planning, summaries</li><li>HubSpot CRM – Free sales &amp; customer management</li><li>n8n– Task &amp; workflow automation</li></ul></div><div>By using low-cost AI tools, the business achieved results similar to larger competitors without increasing operational costs.</div><div>Start with free plans (e.g., ChatGPT free, HubSpot free CRM, n8n free). Upgrade only when you need more usage or features.</div>

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Inside Y Combinator: Analysis of 400+ Startups and Market Trends