Vercel's Pranati Perry explains that tools like V0 occupy a new space between static design (Figma) and development. They enable designers and PMs to create interactive prototypes that better communicate intent, supplement PRDs, and explore dynamic states without requiring full engineering resources.

The traditional, linear handoff from product spec to design to code is collapsing. Roles and stages are blurring, with interactive prototypes replacing static documents and the design file itself becoming the central place for the entire team to align and collaborate.

The current model of separate design files and codebases is inefficient. Future tools will enable designers to directly manipulate production code through a visual canvas, eliminating the handoff process and creating a single, shared source of truth for the entire team.

Historically, resource-intensive prototyping (requiring designers and tools like Figma) was reserved for major features. AI tools reduce prototype creation time to minutes, allowing PMs to de-risk even minor features with user testing and solution discovery, improving the entire product's success rate.

Instead of writing detailed specs, product teams at Google use AI Studio to build functional prototypes. They provide a screenshot of an existing UI and prompt the AI to clone it while adding new features, dramatically accelerating the product exploration and innovation cycle.

A prototype-first culture, accelerated by AI tools, allows teams to surface and resolve design and workflow conflicts early. At Webflow, designers were asked to 'harmonize' their separate prototypes, preventing a costly integration problem that would have been much harder to fix later in the development cycle.

As AI models become proficient at generating high-quality UI from prompts, the value of manual design execution will diminish. A professional designer's key differentiator will become their ability to build the underlying, unique component libraries and design systems that AI will use to create those UIs.

AI tools that generate functional UIs from prompts are eliminating the 'language barrier' between marketing, design, and engineering teams. Marketers can now create visual prototypes of what they want instead of writing ambiguous text-based briefs, ensuring alignment and drastically reducing development cycles.

The panel suggests a best practice for AI prototyping tools: focus on pinpointed interactions or small, specific user flows. Once a prototype grows to encompass the entire product, it's more efficient to move directly into the codebase, as you're past the point of exploration.