Are Consumer Agents a Potential Tailwind for Vertical Software?

Consumer agents could emerge as a tailwind for select vertical software vendors by reducing friction between consumer intent and transactions. Following the viral launch of Muse and Instinct, we see three companies within our Vertical & Systems coverage that could see the most direct impact: ServiceTitan (TTAN; OW, $92 PT) could benefit as agents reduce friction in finding and booking local services, driving incremental jobs and higher Gross Transaction Value; CCC Intelligent Solutions (CCC; OW, $9 PT) could benefit if agents increase the percentage of accidents reported as insurance claims, adding claims volume through its network; Via Transportation (VIA; OW $33 PT) could benefit as agents make transportation decisions based on price, travel time and convenience, surfacing Via-powered microtransit options and potentially leading local governments to expand spending. That said, we have not seen any evidence yet that consumer agents are having an impact on these companies;