The best agentic UX isn't a generic chat overlay. Instead, identify where users struggle with complex inputs like formulas or code. Replace these friction points with a native, natural language interface that directly integrates the AI into the core product workflow, making it feel seamless and powerful.
Standard SaaS pricing fails for agentic products because high usage becomes a cost center. Avoid the trap of profiting from non-use. Instead, implement a hybrid model with a fixed base and usage-based overages, or, ideally, tie pricing directly to measurable outcomes generated by the AI.
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.
Warp's explosive growth wasn't just about adding AI; it was about reframing their identity. The turning point came when they stopped being a "terminal with AI features" and became an "agentic development environment." This strategic repositioning made AI the core value proposition, not an add-on, which unlocked rapid market adoption.
The AI value chain flows from hardware (NVIDIA) to apps, with LLM providers currently capturing most of the margin. The long-term viability of app-layer businesses depends on a competitive model layer. This competition drives down API costs, preventing model providers from having excessive pricing power and allowing apps to build sustainable businesses.
To discover high-value AI use cases, reframe the problem. Instead of thinking about features, ask, "If my user had a human assistant for this workflow, what tasks would they delegate?" This simple question uncovers powerful opportunities where agents can perform valuable jobs, shifting focus from technology to user value.
AI's impact on coding is unfolding in stages. Phase 1 was autocomplete (Copilot). We're now in Phase 2, defined by interactive agents where developers orchestrate tasks with prompts. Phase 3 will be true automation, where agents independently handle complete, albeit simpler, development workflows without direct human guidance.