AI Scribes:10+ $10m ARR Companies, Too Late to Join?

The AI scribes field has been booming lately, with no fewer than ten companies reached $1M in MRR. I've conducted in-depth research on over 70 companies in this space, analyzing their products, founding dates, available funding information, revenue disclosures, each company's barriers to entry, and their unique positioning.

Is there still an opportunity in this field? Is it too late to enter? Let's find out.

At first glance, the AI scribes sector may seem insignificant, mainly focusing on recording conversations using AI-driven speech recognition. However, once the right application scenario is found, it can become highly profitable.

The most prominent use case is in the healthcare sector. The U.S. healthcare system has strict regulations requiring detailed records of doctor-patient conversations. Many doctors spend half their time documenting on the computer while treating patients. We all know how high doctors' salaries are in the U.S., so saving half of their time is incredibly valuable. Now, there's AI that can significantly reduce costs in this area.

The general healthcare field is highly competitive, with over 20 companies in the space, and more than half of them generating close to ten million dollars in ARR. For example, Augmedix reported $13 million in revenue for a single quarter.

It's fascinating to see how latecomers in this highly competitive field continue to twist their products, creating differentiation to carve out their share of the market.

For instance:

• Nabla entered the market as a Chrome browser extension, offering low-cost integration with existing medical record systems.
• Hint focuses on customized integration with various Electronic Health Record (EHR) systems used by hospitals.
• Athelas made breakthroughs in speech recognition technology, enhancing real-time capabilities and multi-person recognition.
• Ambience emphasizes personalization, automatically mimicking a doctor's writing style in notes.
• Sully.ai highlights compliance, integrating HIPAA and other regulatory standards.
• Lyrebird provides bank-level encryption to ensure the security of private data.

A small market isn't scary – false demand is. Many companies have quickly identified more vertical segments, such as veterinary care, PT, home aid, etc. These areas have also seen several companies approaching millions in revenue.

In the veterinary field, Taklatoo has reached $500,000 in Monthly Recurring Revenue (MRR). In home care, Andy and Skypoint have both achieved $1.5 million in MRR.

So, is there still an opportunity in the AI scribes space in healthcare? Is it too late to enter? I believe the opportunity is gone.

When a field becomes this hot, with many companies already funded by VCs like A16Z, there's no room left for new entrants. Competing against companies with hundreds of millions or even billions in funding could result in being crushed at any moment.

Opportunities might exist in other vertical niches. Entrepreneurs who deeply understand specific verticals need to identify scenarios where AI scribes can genuinely add value.

I've compiled a detailed table of over 70 companies in the AI scribes field, including each company's product, website, founding date, funding status, revenue disclosures, barriers to entry, and unique positioning. I'm offering this resource for free here.

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