Early AI agents are unreliable and behave in non-human ways. Framing them as "virtual collaborators" sets them up for failure. A creative metaphor, like "fairies," correctly frames them as non-human entities with unique powers and flaws. This manages expectations and unlocks a rich vein of product ideas based on the metaphor's lore.

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AI errors, or "hallucinations," are analogous to a child's endearing mistakes, like saying "direction" instead of "construction." This reframes flaws not as failures but as a temporary, creative part of a model's development that will disappear as the technology matures.

To trust an agentic AI, users need to see its work, just as a manager would with a new intern. Design patterns like "stream of thought" (showing the AI reasoning) or "planning mode" (presenting an action plan before executing) make the AI's logic legible and give users a chance to intervene, building crucial trust.

Product leaders must personally engage with AI development. Direct experience reveals unique, non-human failure modes. Unlike a human developer who learns from mistakes, an AI can cheerfully and repeatedly make the same error—a critical insight for managing AI projects and team workflow.

The terminology for AI tools (agent, co-pilot, engineer) is not just branding; it shapes user expectations. An "engineer" implies autonomous, asynchronous problem-solving, distinct from a "co-pilot" that assists or an "agent" that performs single-shot tasks. This positioning is critical for user adoption.

Treat advanced AI systems not as software with binary outcomes, but as a new employee with a unique persona. They can offer diverse, non-obvious insights and a different "chain of thought," sometimes finding issues even human experts miss and providing complementary perspectives.

AI's occasional errors ('hallucinations') should be understood as a characteristic of a new, creative type of computer, not a simple flaw. Users must work with it as they would a talented but fallible human: leveraging its creativity while tolerating its occasional incorrectness and using its capacity for self-critique.

Don't view AI tools as just software; treat them like junior team members. Apply management principles: 'hire' the right model for the job (People), define how it should work through structured prompts (Process), and give it a clear, narrow goal (Purpose). This mental model maximizes their effectiveness.

The most effective AI user experiences are skeuomorphic, emulating real-world human interactions. Design an AI onboarding process like you would hire a personal assistant: start with small tasks, verify their work to build trust, and then grant more autonomy and context over time.

While AI offers efficiency gains, its true marketing potential is as a collaborative partner. This "designed intelligence" approach uses AI for scale and data processing, freeing humans for creativity, connection, and building empathetic customer experiences, thus amplifying human imagination rather than just automating tasks.

Instead of forcing AI to be as deterministic as traditional code, we should embrace its "squishy" nature. Humans have deep-seated biological and social models for dealing with unpredictable, human-like agents, making these systems more intuitive to interact with than rigid software.