164 - The Hidden UX Taxes that AI and LLM Features Impose on B2B Customers Without Your Knowledge
Mar 4, 2025
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Explore the hidden user experience hurdles posed by AI and large language models for B2B customers. Discover how integrating AI with traditional software can enhance value and user satisfaction. Dive into the complex relationship between AI features and user behavior, emphasizing the importance of addressing real user challenges. Learn about the intricacies of auditing AI systems in regulated sectors while maintaining a seamless experience. This discussion offers valuable insights for product leaders seeking to maximize AI's benefits without compromising user trust.
Hidden UX taxes introduced by AI and LLM features can detract from customer satisfaction and loyalty in B2B products.
Focusing solely on AI model accuracy without integrating user experience may lead to unsuccessful interactions and dissatisfied customers.
Deep dives
The Impact of User Experience on AI Products
User experience (UX) design plays a critical role in the success of AI products, especially in B2B contexts. Without deliberate focus on UX, AI implementations can create hidden 'taxes,' such as friction and usability issues that adversely affect sales, customer retention, and product adoption rates. Customers prioritize benefits and outcomes over technical capabilities, meaning that a failure to provide a seamless experience can lead to decreased satisfaction and brand loyalty. Early inflated expectations in user experience can damage a company's brand association, highlighting the importance of understanding customer needs and expectations from the outset.
Balancing AI Model Accuracy and User Experience
Improving AI model accuracy is essential for better outputs, but customers ultimately care more about the outcomes generated from these products. For example, enhanced coding tools like Cursor demonstrate how integrated UX can save users time and effort compared to using AI features in isolation. It’s vital for product leaders to allocate resources wisely between upgrading model accuracy and refining user experience, particularly in industries where accuracy directly impacts customer satisfaction. Focusing solely on technical improvements without addressing user experience can lead to situations where even the most accurate models do not yield successful or satisfying user interactions.
Anticipating New Challenges with AI Integration
Integrating AI into products often exposes users to new challenges that require careful consideration and research. Implementing predictive models or automation can create new problems, forcing teams to rethink workflows and support structures surrounding their products. For instance, when the predictive capabilities of an AI system reveal customer behavior insights, it's crucial to determine how sales teams will adapt and what support they will need to leverage this new information effectively. Understanding these transitions and proactively addressing subsequent challenges ensures that the implementation of AI adds value rather than complexity to user operations.
The Dual Role of AI and Human-Centric Design
Successful products are those that blend AI capabilities with thoughtfully designed deterministic software to meet user needs effectively. While many founders are enthusiastic about incorporating AI, it's pivotal to remember that functionality should always be aligned with user experience and expectations. Products that attempt to be everything for everyone often end up losing their competitive edge; strategically focused design with AI integrated serves users better. Exceptional value can be achieved by ensuring that AI enhancements enhance, rather than complicate, the user experience, affirming the importance of a user-centered approach in product development.
Are you prepared for the hidden UX taxes that AI and LLM features might be imposing on your B2B customers—without your knowledge? Are you certain that your AI product or features are truly delivering value, or are there unseen taxes that are working against your users and your product / business? In this episode, I’m delving into some of UX challenges that I think need to be addressed when implementing LLM and AI features into B2B products.
While AI seems to offer the change for significantly enhanced productivity, it also introduces a new layer of complexity for UX design. This complexity is not limited to the challenges of designing in a probabilistic medium (i.e. ML/AI), but also in being able to define what “quality” means. When the product team does not have a shared understanding of what a measurably better UX outcome means, improved sales and user adoption are less likely to follow.
I’ll also discuss aspects of designing for AI that may be invisible on the surface. How might AI-powered products change the work of B2B users? What are some of the traps I see some startup clients and founders I advise in MIT’s Sandbox venture fund fall into?
If you’re a product leader in B2B / enterprise software and want to make sure your AI capabilities don’t end up creating more damage than value for users, this episode will help!
Highlights/ Skip to
Improving your AI model accuracy improves outputs—but customers only care about outcomes (4:02)
AI-driven productivity gains also put the customer’s “next problem” into their face sooner. Are you addressing the most urgent problem they now have—or used to have? (7:35)
Products that win will combine AI with tastefully designed deterministic-software—because doing everything for everyone well is impossible and most models alone aren’t products (12:55)
Just because your AI app or LLM feature can do ”X” doesn't mean people will want it or change their behavior (16:26)
AI Agents sound great—but there is a human UX too, and it must enable trust and intervention at the right times (22:14)
Not overheard from customers: “I would buy this/use this if it had AI” (26:52)
Adaptive UIs sound like they’ll solve everything—but to reduce friction, they need to adapt to the person, not just the format of model outputs (30:20)
Introducing AI introduces more states and scenarios that your product may need to support that may not be obvious right away (37:56)
Quotes from Today’s Episode
Product leaders have to decide how much effort and resources you should put into model improvements versus improving a user’s experience. Obviously, model quality is important in certain contexts and regulated industries, but when GenAI errors and confabulations are lower risk to the user (i.e. they create minor friction or inconveniences), the broader user experience that you facilitate might be what is actually determining the true value of your AI features or product. Model accuracy alone is not going to necessarily lead to happier users or increased adoption. ML models can be quantifiably tested for accuracy with structured tests, but because they’re easier to test for quality vs. something like UX doesn’t mean users value these improvements more. The product will stand a better chance of creating business value when it is clearly demonstrating it is improving your users’ lives. (5:25)
When designing AI agents, there is still a human UX - a beneficiary - in the loop. They have an experience, whether you designed it with intention or not. How much transparency needs to be given to users when an agent does work for them? Should users be able to intervene when the AI is doing this type of work? Handling errors is something we do in all software, but what about retraining and learning so that the future user experiences is better? Is the system learning anything while it’s going through this—and can I tell if it’s learning what I want/need it to learn? What about humans in the loop who might interact with or be affected by the work the agent is doing even if they aren’t the agent’s owner or “user”? Who’s outcomes matter here? At what cost? (22:51)
Customers primarily care about things like raising or changing their status, making more money, making their job easier, saving time, etc. In fact,I believe a product marketed with GenAI may eventually signal a negative / burden on customers thanks to the inflated and unmet expectations around AI that is poorly implemented in the product UX. Don’t think it’s going to be bought just because it using AI in a novel way. Customers aren’t sitting around wishing for “disruption” from your product; quite the opposite. AI or not, you need to make the customer the hero. Your AI will shine when it delivers an outsized UX outcome for your users (27:49)
What kind of UX are you delivering right out of the box when a customer tries out your AI product or feature? Did you design it for tire kicking, playing around, and user stress testing? Or just an idealistic happy path? GenAI features inside b2b products should surface capabilities and constraints particularly around where users can create value for themselves quickly. Natural hints and well-designed prompt nudges in LLMs for example are important to users and to your product team: because you’re setting a more realistic expectation of what’s possible with customers and helping them get to an outcome sooner. You’re also teaching them how to use your solution to get the most value—without asking them to go read a manual. (38:21)
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