The Intersection of Product Development and Artificial Intelligence: Creating Efficient Solutions and Disrupting Competitive Landscapes



Aug 10, 20233 min read


The Intersection of Product Development and Artificial Intelligence: Creating Efficient Solutions and Disrupting Competitive Landscapes


In today's fast-paced and technology-driven world, understanding the nuances of product development and artificial intelligence (AI) is essential for businesses to thrive. By harnessing the power of innovative solutions and disruptive technologies, companies can create efficient products and gain a competitive edge in the market. This article explores the commonalities between feature-driven product development and the transformative potential of AI, while also highlighting the challenges and opportunities they present.

The Power of Product Development:

Product development is centered around creating solutions that address various situational segments. By understanding customer needs and behaviors, businesses can design products that make existing behaviors more efficient or empower new ones. The key lies in identifying pain points and offering suitable solutions to enhance customer experiences. This approach focuses on optimizing existing practices and leveraging them to create innovative products that cater to a wide range of consumer needs.

The Disruptive Potential of AI:

Contrary to popular belief, AI is not just about collecting vast amounts of data or making incremental improvements. According to experts at the forefront of AI research, large language models (LLMs) alone are unlikely to lead us to artificial general intelligence (AGI). The future of AI lies in embracing new and better technologies. LLMs may undergo verticalization, with multiple versions specializing in specific domains, rather than relying solely on horizontal models.

AI's impact on markets is not uniform; instead, it selectively targets specific companies and their value chains. The true value of AI lies in applying intelligence and learning to different stages of the corporate value chain. Companies that have structured their workflows to minimize the need for intelligence and learning will need to adapt to fully harness AI's potential. Therefore, companies with similar steps in their value chains may benefit more from AI than those in the same industry or customer segment.

Disrupting Competitive Advantage:

AI has the potential to disrupt traditional notions of competitive advantage. As exemplified by Google's "we have no moat" memo, AI is expected to level the playing field. Companies that rely on unique strengths or market positions may find themselves at a disadvantage as AI becomes more prevalent. The ability to leverage intelligent systems and automation will become a crucial aspect of remaining competitive in the AI-driven landscape.

The Bifurcation of the Economy:

AI's transformative power extends beyond specific industries or customer segments. As AI becomes more ubiquitous, customer acquisition channels are expected to collapse into agents. This means that businesses will increasingly rely on AI-powered agents to handle various tasks, reducing the need for traditional software interfaces. Companies that have built their growth strategies around product-led growth or community-driven go-to-market approaches may need to adapt to this changing landscape.

Actionable Advice:

  • 1. Embrace Disruptive Technologies: To stay ahead of the curve, businesses should explore and invest in emerging technologies beyond LLMs. Keeping an eye on new advancements and understanding their potential applications can provide a competitive advantage in an evolving AI landscape.
  • 2. Analyze Value Chains: Instead of solely focusing on industry or customer segmentation, analyze your company's value chain to identify areas where AI can create efficiencies. By reimagining workflows and integrating intelligent systems, businesses can unlock the full potential of AI in their operations.
  • 3. Adapt to Agent-Centric Paradigm: Prepare for the shift from traditional customer acquisition channels to AI-powered agents. Evaluate how your company can leverage agents to enhance customer experiences, streamline processes, and automate tasks. Consider redefining your growth strategies to align with this emerging paradigm.


The convergence of product development and AI presents immense opportunities for businesses to create efficient solutions and disrupt competitive landscapes. By understanding the key differences between features and products and embracing the transformative potential of AI, companies can stay ahead of the curve. By investing in emerging technologies, analyzing value chains, and adapting to an agent-centric paradigm, businesses can position themselves for success in an AI-driven future.


  1. "Feature vs Product. When you understand the difference… | by Alan Klement | Jobs to be Done", (Glasp)
  2. "5 Contrarian AI Theses For Early Stage Investors", (Glasp)

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