Y Combinator Startup Podcast AI Apps Are Broken — Here's How To Fix Them
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May 23, 2025 
Pete Koomen, YC General Partner and founder of Optimizely, shares insights on reimagining AI in software. He critiques current AI tools, like Gmail's draft feature, for complicating tasks instead of simplifying them. The conversation highlights the need for customizable, AI-native applications that empower users. They discuss how user-driven prompts can transform the AI development landscape, making it accessible for non-programmers. Koomen advocates for a redesign of software that fully leverages AI's potential, enhancing productivity and user experience.
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Pete's AI Experience Contrast
- Pete Koomen shared his contrasting AI experiences using powerful coding tools versus frustrating AI integrations in apps like Gmail.
- He highlighted that some AI applications create more work instead of saving time, despite advanced underlying models like Gemini.
System Prompts Shape AI Tone
- Gmail's AI drafts sound generic because the system prompt enforces a formal, business tone.
- Hidden and uneditable system prompts prevent personalization, making AI drafts feel unnatural.
Legacy Software Limits AI Potential
- Traditional software development hides code from users, limiting AI personalization.
- One-size-fits-all system prompts result in generic outputs that users don't actually write.