Navigating Product-Market Fit in LLM-Powered Startups

Today, I'm chatting with Stuart Winter-Tear about AI product management. We're getting into the nitty-gritty of what it takes to build and launch LLM-powered products for the commercial market that actually produce value. Among other things in this rich conversation, Stuart surprised me with the level of importance he believes UX has in making LLM-powered products successful, even for technical audiences.

After spending significant time on the forefront of AI’s breakthroughs, Stuart believes many of the products we’re seeing today are the result of FOMO above all else. He shares a belief that I’ve emphasized time and time again on the podcast–product is about the problem, not the solution. This design philosophy has informed Staurt’s 20-plus year-long career, and it is pivotal to understanding how to best use AI to build products that meet users’ needs.

Highlights/ Skip to 

• Why Stuart was asked to speak to the House of Lords about AI (2:04)
• The LLM-powered products has Stuart been building recently (4:20)
• Finding product-market fit with AI products (7:44)
• Lessons Stuart has learned over the past two years working with LLM-power products (10:54)
•  Figuring out how to build user trust in your AI products (14:40)
• The differences between being a digital product manager vs. AI product manager (18:13)
• Who is best suited for an AI product management role (25:42)
• Why Stuart thinks user experience matters greatly with AI products (32:18)
• The formula needed to create a business-viable AI product (38:22)
•  Stuart describes the skills and roles he thinks are essential in an AI product team and who he brings on first (50:53)
• Conversations that need to be had with academics and data scientists when building AI-powered products (54:04)
• Final thoughts from Stuart and where you can find more from him (58:07)

• “I think that the core dream with GenAI is getting data out of IT hands and back to the business. Finding a way to overlay all this disparate, unstructured data and [translate it] to the human language is revolutionary. We’re finding industries that you would think were more conservative (i.e. medical, legal, etc.) are probably the most interested because of the large volumes of unstructured data they have to deal with. People wouldn’t expect large language models to be used for fact-checking… they’re actually very powerful, especially if you can have your own proprietary data or pipelines. Same with security–although large language models introduce a terrifying amount of security problems, they can also be used in reverse to augment security. There’s a lovely contradiction with this technology that I do enjoy.” - Stuart Winter-Tear (5:58)
• “[LLM-powered products] gave me the wow factor, and I think that’s part of what’s caused the problem. If we focus on technology, we build more technology, but if we focus on business and customers, we’re probably going to end up with more business and customers. This is why we end up with so many products that are effectively solutions in search of problems. We’re in this rush and [these products] are [based on] FOMO. We’re leaving behind what we understood about [building] products—as if [an LLM-powered product] is a special piece of technology. It’s not. It’s another piece of technology. [Designers] should look at this technology from the prism of the business and from the prism of the problem. We love to solutionize, but is the problem the problem? What’s the context of the problem? What’s the problem under the problem? Is this problem worth solving, and is GenAI a desirable way to solve it? We’re putting the cart before the horse.” - Stuart Winter-Tear (11:11)
• “[LLM-powered products] feel most amazing when you’re not a domain expert in whatever you’re using it for. I’ll give you an example: I’m terrible at coding. When I got my hands on Cursor, I felt like a superhero. It was unbelievable what I could build. Although [LLM products] look most amazing in the hands of non-experts, it’s actually most powerful in the hands of experts who do understand the domain they’re using this technology. Perhaps I want to do a product strategy, so I ask [the product] for some assistance, and it can get me 70% of the way there. [LLM products] are great as a jumping off point… but ultimately [they are] only powerful because I have certain domain expertise.” - Stuart Winter-Tear (13:01)
• “We’re so used to the digital paradigm. The deterministic nature of you put in X, you get out Y; it’s the same every time. Probabilistic changes every time. There is a huge difference between what results you might be getting in the lab compared to what happens in the real world. You effectively find yourself building [AI products] live, and in order to do that, you need good communities and good feedback available to you. You need these fast feedback loops. From a pure product management perspective, we used to just have the [engineering] timeline… Now, we have [the data research timeline]. If you’re dealing with cutting-edge products, you’ve got these two timelines that you’re trying to put together, and the data research one is very unpredictable. It’s the nature of research. We don’t necessarily know when we’re going to get to where we want to be.” - Stuart Winter-Tear (22:25)
• “I believe that UX will become the #1 priority for large language model products. I firmly believe whoever wins in UX will win in this large language model product world.  I’m against fully autonomous agents without human intervention for knowledge work. We need that human in the loop. What was the intent of the user? How do we get that right push back from the large language model to understand even the level of the person that they’re dealing with? These are fundamental UX problems that are going to push UX to the forefront… This is going to be on UX to educate the user, to be able to inject the user in at the right time to be able to make this stuff work. The UX folk who do figure this out are going to create the breakthrough and create the mass adoption.” - Stuart Winter-Tear (33:42)