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How to Build a Boring AI Startup That Quietly Hits $10M ARR

  • Writer: Shah Alvi
    Shah Alvi
  • 2 minutes ago
  • 5 min read


We are not in the “build an AI chatbot and pray” phase anymore.

The path to $10M ARR in AI is clear, but only if you start automating the workflows nobody wants to touch.

Not consumer toys. Not vague productivity tools.

I’m talking about the industries where “digital transformation” peaked with Windows XP.

Sectors full of regulations, legacy systems, and spreadsheet spaghetti, where six-figure errors happen weekly and the only software upgrade is a new intern.

These aren’t sexy markets. But they’re waiting for the right agent chains to flip the switch.

Because in B2B AI, boring equals billions.

If You’re Still Pitching a Generalist AI Agent, You’re Already Behind

Most AI founders are stuck in the wrong mindset.

They’re building monolithic, general-purpose “do-it-all” AI agents that promise to automate everything and end up delivering nothing.

These products:

  • Require too much context to be reliable

  • Make opaque decisions that kill trust

  • Demand complete workflow overhauls from customers

  • And worst of all, they sell poorly in regulated industries

You don’t need a master agent. You need a chain of specialists.

Small, narrow agents, each focused on a single, high-friction task:

  • Extracting data from complex docs

  • Spotting anomalies in real-time

  • Summarizing info into reports

  • Scheduling and reminders

  • Communicating updates clearly

Chain them together, and suddenly you’ve replaced five salaried humans with a network of highly efficient AI systems.

Why AI Agents Win Where SaaS Lost

Why hasn’t software eaten these workflows? Because SaaS was built for order, and these industries run on chaos.

Let’s take commercial real estate operations as a case study.

One Atlanta firm I’ve worked with manages 56 properties. Their team wasted 30+ hours weekly extracting data from leases and manually building reports.

They tested a dozen SaaS platforms over five years. All failed.

Why?

Because traditional SaaS demands conformity.
  • Data must be labeled

  • Workflows must be followed

  • Formats must be respected

Traditional SaaS assumes your data is clean and your workflows are logical. But most industries run on outdated templates and duct-taped processes no engineer wants to touch.

AI agents flip the model. They adapt to the mess:

  • Read PDFs in any format

  • Work inside legacy Excel files

  • Extract value from jumbled email chains

This isn’t just good UX. It’s systems empathy. And it’s why AI agents will succeed where SaaS couldn’t get a foot in the door.

Where You Should Actually Be Building

Everyone’s building for law firms and customer support.

If you’re serious about ARR, look deeper. Go where human coordination still rules:

  • Heavily manual workflows

  • Mountains of unstructured documents

  • Legacy software built in the ’90s and early 2000s

  • SaaS-resistant due to regulation or specialization

Think:

  • Specialty insurance underwriting

  • Equipment leasing operations

  • Commercial real estate management

  • Medical claims processing

  • Supply chain documentation

These industries still run on Outlook 2016 and 40-column spreadsheets. They were skipped by the last wave of SaaS because of how messy and specific their workflows are.

But for AI agents? They’re perfect.

What Agent Chains Actually Look Like

Let’s zoom in.

Commercial real estate operations: reviewing a lease involves

  • Extracting 50+ terms from dense documents

  • Comparing them to market standards

  • Flagging discrepancies

  • Creating summary reports

  • Setting up renewal timelines

  • Communicating findings to stakeholders

This is a 6-hour task chain. Here’s what it looks like with AI agents:

Agent 1: The Scraper

  • Parses lease PDFs

  • Pulls key data fields

  • Applies confidence scores

Agent 2: The Auditor

  • Benchmarks terms vs. comps

  • Flags anomalies and risk language

Agent 3: The Synthesizer

  • Generates executive summaries

  • Formats for internal reports

Agent 4: The Coordinator

  • Sets calendar events

  • Tracks renewal timelines

Agent 5: The Messenger

  • Drafts stakeholder updates

  • Prepares board-ready slides

Result: a 6-hour human process drops to 15 minutes.

Not hype. Transformation.

How to Sell This and Hit $10M ARR

Let’s not romanticize the tech. AI doesn’t sell itself.

Here’s how to go from prototype to pipeline:

Phase 1: Authority via Content (0–$300K ARR)

People won’t trust your AI until they trust you.

Win trust through surgical, no-BS content:

  • Micro demos: 45-second Looms of your scraper agent doing real work.

  • Quantify everything: Don’t say “saves time”. Say “turns 4 hours into 7 minutes.”

  • Give micro-solutions: Free agents or tools that solve 1 specific pain point.

Key benchmarks:

  • 3%+ CTR = message-market resonance

  • 3–5% conversion on lead magnets

  • <$100 customer acquisition cost through content alone

Become the person solving painful, invisible problems no one else talks about.

Phase 2: Paid Distribution (Up to $3M ARR)

Double down on what works organically. But don’t sell the tool. Amplify the transformation.

Use your best-performing content to:

  • Drive downloads of free tools

  • Segment leads by pain point

  • Funnel them into paid pilots

Example progression:

  • Free checklist → 2,400 downloads/month

  • Basic doc analyzer → 30% convert to deeper tool

  • Benchmark report → 180 demo requests/month

  • Live workshop → 40% close rate to pilot

  • 90-day pilot → 73% convert to annual contract

Phase 3: High-Ticket Sales ($3M–$10M ARR)

Now you build an education machine:

  • Weekly webinars by vertical

  • Live agent chain walkthroughs

  • Offer $0 pilot programs

  • Anchor pricing to dollar savings

Funnel math:

  • $100–300 per registrant

  • 50% attendance

  • 10–15% to sales calls

  • 30% close

  • $30K–$50K ACV

Expansion: Go Vertical or Go Horizontal

Once you dominate a niche, you can expand in two ways:

Vertical:

  • Go deeper into one industry

  • Add AI agents for adjacent tasks

  • Automate full workflows

Example: From lease abstraction → renewals → negotiations → full lifecycle management

Horizontal:

  • Port your chain to similar industries

  • Adjust for new document types

  • Partner with domain experts

Vertical means higher ACVs (Average Contract Values) and deeper moats. Horizontal means faster TAM (Total Addressable Market) expansion. Choose based on your strength: depth or speed

What Separates Winners From Tourists

This isn’t easy. You need:

  • Domain depth

  • A real grasp of agent architecture

  • Relentless content output

  • The ability to close B2B deals

  • And a systems mind to map out workflow automation

But you don’t need to raise millions. You don’t need a research lab. You don’t even need to invent new tech.

You just need to connect the dots that others overlook.

Your First 3 Days: Sprint Setup

Day 1: Pick the Industry

  • Look for document-heavy workflows

  • Talk to 5 people in that space

  • Map pain points and bottlenecks

Day 2: Design the Chain

  • Identify what the agent needs to extract, compare, or automate

  • Define inputs and expected outputs

  • Sketch how it integrates into current systems

Day 3: Build and Share

  • Launch your first free tool or micro-demo

  • Publish 1 piece of specific, helpful content

  • Book 10 convos with ideal users

The next Stripe isn’t building payment APIs. It’s building AI agents that finally kill the Excel → PDF → Email → Excel loop.

Your first $10M customer is currently cursing Outlook while copy-pasting from a 2012 invoice.

Go find them.

 
 
 

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