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When It Makes and Doesn't Make Sense to Use AI For Product Development

We have witnessed an explosive growth of artificial intelligence (AI) tools in recent months. As we head into 2024, it's safe to say that smart algorithms have already significantly impacted almost every aspect of our daily lives.

According to a recent McKinsey Global Survey, a third of the respondents stated that their organizations regularly leveraged AI tools in at least one business function. With the rise of ChatGPT and other smart technologies, AI is no longer a distant dream. It’s starting to play a key role in how businesses operate. The same is true when it comes to product development.

This article delves into the nuances of AI in product development, exploring the benefits, potential pitfalls, and best practices for harnessing this powerful technology. Whether you are a product manager, developer, or business leader looking to navigate the AI landscape, this guide aims to provide valuable insights and practical advice to help you make informed decisions and unlock the full potential of AI in your product development journey.


AI in Product Development

Although AI will disrupt many industries, and sometimes quite significantly, it won’t replace product teams. Instead, AI will optimize them. For example, these cutting-edge algorithms will help streamline tasks requiring significant time and effort.

What’s more, AI also promises to accelerate innovation and boost efficiency. After all, companies don’t build product development teams just based on skill sets. It also comes down to a cultural fit, aligned passion and vision, and the ability to harness the power of technology.

However, AI isn’t suitable for all use cases. Product teams must look beyond the hype and pick the right projects for AI integration.

When It Makes Sense to Use AI for Product Development

Using AI in product development can be incredibly beneficial. However, to get the most out of these algorithms, businesses must understand the contexts and scenarios where they offer the most value.

AI is highly suitable for projects that demand the following:

Automation of Repetitive Tasks

For products that have functions involving repetitive or mundane tasks, AI can automate these processes to increase efficiency and accuracy. For example, AI can support product teams with product testing and customer service. Whenever this is the case, product managers and engineers are free to focus on more strategic and creative work.

Predictive Analytics

AI-driven predictive models can deliver significant value if the product benefits from forecasting (such as predicting stock levels, user behaviors, or market trends). This approach can go a long way in enhancing end-user experiences.

Complex Data Analysis

If your product handles or processes vast oceans of data, AI can be critical to deriving insights, patterns, and recommendations quickly. From a human (or manual) perspective, you can bet that it would be challenging or time-consuming to detect.

Image and Video Analysis

If your product involves visual data processing, AI-driven image and video analysis can help optimize object detection, classification, and other tasks.

Natural Language Processing (NLP)

AI integration is perfect for products that intend to interact with users using natural language, such as chatbots, virtual assistants, or sentiment analysis tools. In fact, NLP is the only thing that can make such products function.

Generate New Ideas

AI is proving to be an excellent brainstorming tool. Product teams can use it to generate new product ideas, features, and even designs. If you’re thinking about creating a groundbreaking product or redefining a market, AI can potentially provide functionalities and experiences that set your product apart. AI can also help product teams innovate more quickly and efficiently.

Improve Product Quality

Organizations can also depend on AI to quickly improve their products’ quality. For example, intelligent algorithms can quickly identify and fix potential bugs, optimize performance, and personalize end-user experiences.

Gather and Analyze Customer Feedback

AI can be key to gathering and analyzing customer feedback from a variety of sources. This includes data from social media, customer surveys, and support tickets. Companies can then leverage this data to enhance existing products or produce new ones that meet the customers’ rapidly evolving needs. Furthermore, adaptive AI systems can modify their behavior for optimal performance in products that need to adjust to changing conditions or environments.

Prototyping and Simulation

AI can help simulate product behaviors, user interactions, and various scenarios to aid design and testing.

Quality Assurance (QA) and Quality Control (QC)

AI is ideal to carry the load of QA and QC testing efficiently. This approach will ensure that companies identify potential bugs, repeatedly analyze test results, and produce reports to ensure a smooth prelaunch.

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When It Doesn't Make Sense to Use AI for Product Development

As compelling as integrating AI in product development might sound, there are specific scenarios where integrating smart algorithms might be highly unsuitable.

AI doesn’t make sense for projects that demand any or all of the following:

Lack of Clear Objective

Simply deploying intelligent algorithms just for the sake of having them, without a clear purpose or objective, can be counterproductive. If AI isn’t solving a specific problem or offering a distinct advantage, what’s the point?

Although product teams can use AI to develop new products or cutting-edge features, without a clear understanding of what the product should achieve, the AI model won’t be able to produce the desired results.

Complexity and Human Judgment

If the introduction of AI makes the product much more challenging to use or understand, it will negatively impact user experiences. In the same vein, AI isn’t yet capable of performing every undertaking, especially those that require complex reasoning or human judgment. For example, AI isn’t ideal for tasks such as setting product strategy, designing new products, and making decisions about product pricing.

Lack of Relevant Data

AI models, especially deep learning, need significant volumes of relevant data to train. AI performance will take a hit if you don’t have the necessary data or means to obtain it. It’s important to use high-quality representative data sets for the AI model to produce accurate results.

Ethical Considerations

There are ethical concerns surrounding the use of AI, such as the potential for bias and discrimination. There are also privacy and compliance considerations. In scenarios where data privacy is paramount and data can’t be shared or processed, using AI might introduce regulatory or ethical challenges.

As such, it’s crucial to carefully consider the ethical implications of using AI for product development. This is especially true when developing healthcare, finance, and criminal justice products.

Limited Resources and High Costs

If you’re working with limited technical resources, you are probably going to struggle to integrate and maintain AI effectively. AI development is often resource-intensive in terms of finances, talent, and time. If the desired return on investment doesn’t justify these costs, reconsidering might be better. It’s important to note that real-time systems with stringent performance requirements might not efficiently handle some AI models’ computational overhead.

Tips for Product Managers and Technical Decision-Makers

Here are some tips and best practices both product managers and technical decision-makers should follow when developing products using AI:

  • Determine real value: When considering using AI for product development, it’s critical to first evaluate the product’s and your team’s specific requirements. They should consider asking questions like “Will AI enhance the product’s value proposition? Or is it just “hype?
  • Understand your target audience: It’s important to conduct extensive user research to determine if AI functionalities align perfectly with user pain points and needs. What should the product be trying to achieve, or what problem is it trying to solve? In this scenario, gathering high-quality data that are representative of your target audience is vital to ensure success.
  • Assess technical feasibility: Before embarking on any product development, it’s crucial to make sure that the company has the necessary infrastructure, data, and expertise available for successful AI implementation.
  • Understand data requirements: Product development will be futile without high-quality data models, especially DL models. So, assess the quality and quantity of available representative data.
  • Think about scalability: As both data and user base expand, the AI models and infrastructure can scale accordingly.
  • Test and iterate: Leverage prototypes to carefully test product functions and features before they are live. This approach will help ensure that product features work as intended and deliver enhanced user experiences. It’s also vital to regularly collect feedback and iterate based on findings even after releasing the product.
  • Keep your finger on the pulse: As AI evolves at breakneck speeds, staying abreast of the latest advancements is essential to understand how they might optimize your product.
  • Consider ethical implications: Never stop thinking about potential AI model biases and other ethical issues to ensure compliance and product relevance. Always respect the privacy of your target audience and adapt your offering accordingly.
  • Plan for maintenance: AI models usually require updates and upkeep cyclically. So, it’s a good idea to plan for ongoing maintenance and monitoring during the early stages of the build.
  • Risk mitigation: Although we aren’t at the level of science fiction movies (just) yet, AI can sometimes behave unpredictably. As such, establish fallback mechanisms and monitor performance continuously.


For both technical decision-makers and product managers, the key is understanding whether AI adds value to the product. AI, for the sake of AI, can be disastrous and a colossal waste. It’s only viable if it aligns with user needs and can be implemented feasibly.


In the current wave of technological evolution, artificial intelligence (AI) has emerged as a transformative force in product development, driving innovation, efficiency, and quality enhancement. Integrating AI in product development processes is not just a trend but a necessity, as it offers significant advantages in automating routine tasks, analyzing complex data, and enhancing user interactions. However, the application of AI must be strategic and well-considered, ensuring that it adds real value to the product and aligns with the users’ needs.

While AI holds the potential to revolutionize product development, businesses must navigate this terrain with discernment. The adoption of AI should be backed by a clear understanding of its capabilities and limitations, avoiding unnecessary implementations and ensuring ethical considerations are at the forefront. It’s about striking the right balance between innovation and responsibility, ensuring that AI serves as a tool for positive transformation rather than a blind pursuit of technological advancement.

As we look forward to the future, the role of AI in product development is set to grow exponentially. Product managers, developers, and business leaders must remain vigilant, making informed decisions and fostering an environment that prioritizes the user-centric, ethical, and effective use of AI. In doing so, we can unlock the full potential of AI, setting the stage for a new era of digital excellence and innovation.

A third-party AI product development services provider like can help organizations identify the best way forward. Furthermore, if building an in-house AI solution is impractical, they can provide a feasible alternative to disrupt a highly competitive AI-driven marketplace.

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