The traditional SaaS method of asking customers what they want doesn't work for AI because customers can't imagine what's possible with the technology's "jagged" capabilities. Instead, teams must start with a deep, technology-first understanding of the models and then map that back to customer problems.
Don't view AI as just a feature set. Instead, treat "intelligence" as a fundamental new building block for software, on par with established primitives like databases or APIs. When conceptualizing any new product, assume this intelligence layer is a non-negotiable part of the technology stack to solve user problems effectively.
Before launch, product leaders must ask if their AI offering is a true product or just a feature. Slapping an AI label on a tool that automates a minor part of a larger workflow is a gimmick. It will fail unless it solves a core, high-friction problem for the customer in its entirety.
Many teams wrongly focus on the latest models and frameworks. True improvement comes from classic product development: talking to users, preparing better data, optimizing workflows, and writing better prompts.
In AI, low prototyping costs and customer uncertainty make the traditional research-first PM model obsolete. The new approach is to build a prototype quickly, show it to customers to discover possibilities, and then iterate based on their reactions, effectively building the solution before the problem is fully defined.
Initially building a tool for ML teams, they discovered the true pain point was creating AI-powered workflows for business users. This insight came from observing how first customers struggled with the infrastructure *around* their tool, not the tool itself.
Companies racing to add AI features while ignoring core product principles—like solving a real problem for a defined market—are creating a wave of failed products, dubbed "AI slop" by product coach Teresa Torres.
The rapid evolution of AI makes traditional product development cycles too slow. GitHub's CPO advises that every AI feature is a search for product-market fit. The best strategy is to find five customers with a shared problem and build openly with them, iterating daily rather than building in isolation for weeks.