Three top VCs, B Capital, Glasswing Ventures, and Zetta Venture Partners, discussed AI trends at SaaStr Annual.Key areas of AI funding include vertical-specific applications, enterprise AI governance tools, and AI developer productivity tools.Startups are advised to focus on employee-facing tools first for successful AI adoption.Companies deploying AI without specific business outcomes often struggle with implementation.Successful AI companies must have substantial tech depth and a clear path to production use cases.AI founders should focus on solving specific problems rather than selling the concept of AI itself.To build a durable AI business, companies should develop applications with stickiness and resilience.AI excels in summarization, content generation, and voice/image recognition, but struggles with complex planning.Creating a data moat and focusing on governance are crucial for success in the AI space.Investor skepticism is rising for 'AI-washing' startups, general-purpose AI assistants, and undifferentiated LLM fine-tuning businesses.