Customer Pain
Who is the ideal customer for this product? Mid-size ($1 million to $100 million in annual revenue) Chief Operating Officer or Technology Director in professional service business who is looking to leverage AI for internal processes, such as creating content, documents, designs, spreadsheets, proposals. What problem does the product solve for the customer? They are interested in using AI and in particular generative AI. But the efforts to date have been of insufficient quality - more of a novelty application of Identify the pain point your product addresses. They have tried using existing AI platforms such as Open AI, Anthropic, and Gemini to improve their business processes, but they had no mechanism of evaluating whether the time and expense invested into these solutions was resulting in increased profits. They have evaluated custom solutions applied to their vertical, but they are extremely expensive and do not prove that they can deliver meaningful business results. Where does this problem rank on the customer’s list of "problems they are looking to solve"? Figuring out ways to leverage AI to improve their business operations is a top concern for professional service firms, and the options today both lack quality and are too expensive. This problem is reinforced every day as the decision makers within these firms hear how AI is reshaping the future, and their leadership is looking for an answer that they cannot currently deliver.
Product Market Size
How many customers are looking to solve this problem for? There are approximately 500k professional service firms in the US (120,000 marketing agencies ↗, and a similar number of law firms, accounting firms, and engineering firms). Approximately 5% of those firms generate between $1M and $100M in annual revenue, meaning that there are 25,000 firms in our target market.
How much are they willing to pay to solve this problem? This market currently spends 7% of their revenue on IT. We estimate that they would be willing to spend 10% of their IT budget on a performance Generative AI solution (e.g., a system that helped them automate significant internal functions). Assume the average revenues of firms having revenue between $1M and $100M is $10M (e.g., 10x $1M, 2x $10M, 1x $100M averages to $10M), and then 0.7% = an average of $70K per customer per year.
What is the addressable market for this product? $70K/customer * 25K customers = $1.75B addressable market.
Product Attributes
Do you have a logo for this product? The logo is a strong humanoid with a hammer and anvil. It is designed to be retro futuristic.
Do you have a schematic for this product? Need to build some UI of what this product would actually be - something about starting with a business outcome to be delivered, some standard inputs, and some desired outputs, and the Qwaility comes up with the prompts, parameters, and processes that help the business create those desired outputs.
- Prompt: given a base prompt, create hundreds of variants (using a generative model) and test to see which variants perform best.
- Paramaters: for parameters like temperature, model, top_p, iterate across different combinations.
- Processes: making a single call to a model, making a preliminary call to a RAG system and then providing a revised prompt to a model, making a preliminary call to a model and making a subsequent call based on the response.
Costs
What are the costs of making 1 product? The AI will cost 20% of the revenue that the customer spends (and if the customer exceeds this cost they will need to purchase a more expensive plan). What are the costs required before you can make your first product? Incorporation, business license, patent, hosting, design. Less than $10K.
Profit Potential
What is the marginal profit potential? Targeting 80% margin (e.g., so that we spend only 20% of each customer's revenue on AI and hosting).
What is the total profit potential of this product? Assume we capture 100% of the market (for the upper bound) you have 80% * $1.75B, or $1.4 billion in total profit potential for this product.
Competition
What is the competitive landscape? There are no direct competitors for automated quality optimization for generative AI. It is expected that there are teams within all of the large-scale generative AI companies (e.g., Anthropic, OpenAI, Gemini) that are focused on making quality assessment/measurement and optimization more efficient.
Will customers be willing to trust you to solve this problem (more than they trust their current solution)? Customers will trust us to solve their problem for 2 reasons: 1. they can try the service up front with limited investment and see whether this is a good fit for their business needs; and 2. there is no required lock-in - although over time customers may look to leverage infrastructure that we are building (e.g., RAG as a service to enable the benefits of RAG without the infrastructure headache, realtime orchestration for running continuous experiments across prompt/parameter/processes and price optimization as the costs of different services fluctuate). What percentage of your potential customers will trust you? Targeting 5% of TAM in the first year leaves us with 5% * $1.4 billion = $70M.
Conclusion
Qwaility is the generative AI solution professional service firms have been waiting for—an affordable, targeted, and results-oriented way to leverage generative AI. By addressing the critical challenges of quality, cost, and ROI, Qwaility has the potential to redefine how firms approach AI-driven process automation. As the industry moves toward deeper AI integration, Qwaility is poised to lead the charge with a compelling value proposition and a clear focus on measurable outcomes.
