In the rush to adopt AI, teams are tempted to start with the technology and search for a problem. However, the most successful AI products still adhere to the fundamental principle of starting with user pain points, not the capabilities of the technology.
It's a common misconception that advancing AI reduces the need for human input. In reality, the probabilistic nature of AI demands increased human interaction and tighter collaboration among product, design, and engineering teams to align goals and navigate uncertainty.
Unlike traditional deterministic products, AI models are probabilistic; the same query can yield different results. This uncertainty requires designers, PMs, and engineers to align on flexible expectations rather than fixed workflows, fundamentally changing the nature of collaboration.
People overestimate AI's 'out-of-the-box' capability. Successful AI products require extensive work on data pipelines, context tuning, and continuous model training based on output. It's not a plug-and-play solution that magically produces correct responses.
In traditional product management, data was for analysis. In AI, data *is* the product. PMs must now deeply understand data pipelines, data health, and the critical feedback loop where model outputs are used to retrain and improve the product itself, a new core competency.
The excitement around AI often overshadows its practical business implications. Implementing LLMs involves significant compute costs that scale with usage. Product leaders must analyze the ROI of different models to ensure financial viability before committing to a solution.
Despite hype in areas like self-driving cars and medical diagnosis, AI has not replaced expert human judgment. Its most successful application is as a powerful assistant that augments human experts, who still make the final, critical decisions. This is a key distinction for scoping AI products.
