The next wave: AI and product evolution
Insights from renowned tech analyst Benedict Evans on the transformative effects of AI
Happy Thanksgiving to all our readers in the US.
This month, we’re sharing some of the highlights from the fascinating presentation Benedict Evans delivered at Pioneer, Intercom’s first AI customer service summit. Evans is a renowned technology analyst, and he shared some very perceptive thoughts on how we can separate the signal from the noise when it comes to AI.
The pattern of progress
When new technologies emerge, there's a predictable pattern: first, we make the technology fit our existing work, then we change our work to fit the technology. As Evans points out, we saw this with mainframes, PCs, the web, and smartphones. Now, we're seeing it with AI.
The critical question for product leaders isn't about implementing AI, but rather how AI will fundamentally reshape what’s possible. Evans cites the first spreadsheet software, VisiCalc, as an example. To the accountants who first encountered it in 1980, its ability to turn weeks of manual calculations into minutes of work was revolutionary. But for the likes of lawyers, it was irrelevant. Only over time did fields like law start utilizing spreadsheets.
Today's AI presents a similar dichotomy: some use cases are immediately transformative – like we’ve already seen in software development and customer service – while others are still searching for their true value proposition.
The revolution will turn invisible
Remember: technology eventually becomes invisible. Nobody today marvels at “automatic” elevators or calls their bank account “AI” because it remembers their balance. The same will happen with today's AI capabilities – they'll simply become expected features of good software.
The winners in this transition won't be those who simply add AI features to existing products. The winners will be the ones who recognize that AI, like every major platform shift before it, isn't just a feature set – it's a complete reimagining of what's possible.
The question isn't whether to implement AI, but how to use it to rethink your product category at a fundamental level.
As Evans notes, “The big changes will be the things that aren't easy to see.” For product leaders, that means looking beyond obvious AI implementations to ask: What previously impossible customer problems can we now solve? What new business models does this enable? How might our entire category be different in five years?
Those questions, more than any specific AI implementation, will determine who shapes the next generation of breakthrough products.
Catch up on Evans’ presentation, as well as the audience Q&A he hosted with Intercom’s Co-founder and Chief Strategy Officer, Des Traynor, here.
What we’ve been up to
The latest episode of Start Good Trouble is now available to catch up on.
In this series, we invite startup leaders to share their unique insights and tactics to help other founders and their teams navigate the challenges of building and scaling a company. This time, Bobby Pinero, co-founder and CEO of Equals, deep dives into the important role metrics play in building a business.
Drawing from The Guide to SaaS Metrics the Equals team has just released, Bobby explains from first principles why SaaS companies are different, and how each metric contributes to a business’ story.
If you’re in the SaaS space, you don’t want to miss out on access to Equals’ new guide and this fascinating conversation.
Calling all founders 📣
Join our Early Stage program to receive a 90% discount on Intercom's AI-powered support platform – which includes Fin, our game-changing AI bot capable of resolving half of your support volume, automatically. You’re in good company.
From the archive: Five key takeaways about AI product management
The AI revolution isn't just transforming products – it's reshaping how we build them. But what does this mean for how product managers work today?
Drawing from her experience at Intercom, Staff Product Manager Julia Godinho shares five essential insights for product leaders working with AI:
Move beyond the hype: Curiosity and critical thinking will separate good product managers from great ones in the AI era.
Get clear on why you’re doing something and avoid “AI for AI's sake.”
Understand how user attitudes toward AI will impact adoption.
Embrace uncertainty and get excited about chartering unknown territories – it’s not often opportunities like this come up.
Rethink traditional approaches to product development when working with technologies like LLMs.
Whether you're already deep in AI product development or just starting to explore the possibilities, Julia’s practical wisdom offers valuable perspectives on managing products in an AI-first world.