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  • Writer's pictureBahar Adineh

Empowering Innovation: Navigating the AI Product Design-Building Journey

Recently, I started a course at MIT University titled "Designing and Building AI Products and Services". I am trying to reinforce my learning by explaining the concepts and points that I have learned here.

There are four phases for designing and building an AI product: Intelligence, Business Process, AI Technology, and Tinkering.

Let's go through each phase and explain it in a simple, understandable way. I will look at questions for each part and how to think about answering them.


Defining AI Product Scope and Desired Behaviors: From Functional Boundaries to Performance Goals.

What is the scope of a product?

The scope of the product refers to its specific functionalities and boundaries within the AI application. This involves defining the AI's capabilities and the particular domain or context in which it will operate. For instance, in a financial advisor application, the scope might include user inputs, transaction history, and personal financial data.

What are the desired behaviours of a product?

The desired behaviours of the product are the specific tasks and functions the AI is expected to perform. This includes achieving certain performance metrics, such as accuracy in recommendations or the ability to analyze trends and policies. Essentially, the desired behaviour defines what the AI is being designed to do, with performance targets like reducing error rates or achieving human-level performance in specific tasks.

Business Process

Exploring AI's Strategic Impact: From Technological Superiority to Network Externalities and Measuring Effectiveness through Operational Targets and Business Impact.

What Strategic Role Does AI Play in a Product?

AI's strategic role in a product can be understood through three strategies outlined in the Delta model:

  • Best Product Strategy: AI's role is to enhance the product's technological superiority. This strategy focuses on making the AI aspect of the product so advanced that it becomes a market leader based solely on its AI capabilities.

  • Full Customer Solutions Strategy: In this approach, AI is integrated into a more general solution to meet customer needs comprehensively. For instance, a security system that includes AI-powered face recognition along with other features like locks, alerts, and recovery services. The focus is not just on the AI itself but on how it contributes to a complete solution.

  • Network Externalities Strategy: This strategy focuses on building a large user base where the value of the product increases as more people use it. The AI doesn't have to be the best, but it supports a networked system that becomes more beneficial as it grows, like a financial policies database for pension recommendations used by bank departments.

How Does a Product Measure its Effectiveness?

The effectiveness of a product utilizing AI can be measured by setting specific operational targets and considering the overall impact on the business process. These targets could include:

  • Improvement in Process Efficiency: For example, reducing uncompleted calls in a call centre by a certain percentage using AI-powered systems.

  • Cost Reduction: Like decreasing legal translation costs by implementing AI for initial translations, thus requiring less human effort.

  • Enhancing User Experience: By adding AI features such as voice commands to a webpage or improving personal assistant capabilities.

  • Innovative Features: Creating new AI-based tools or services, such as a sentiment analysis toolkit or enhancing existing AI technologies.

  • Complementary Assets: Beyond AI, it's essential to address the non-AI requirements. This might involve legal authorizations, regulations renegotiations, or other investments that support AI technology.


AI Integration and IP Strategy: Enhancing Product Capabilities and Navigating the Complex Landscape of Intellectual Property, Paired with a Data-Centric Approach for Continuous Improvement and User-Centric Personalization.

Intellectual Property(IP) Importance:


  1. Complex Patent Landscape: AI technologies are heavily patented areas with a lot of existing patents. Navigating this without intruding on others' IP rights requires active research and possibly the guidance of IP counsel.

  2. Rapid Technological Advancements: The fast pace of development in AI can quickly render today's cutting-edge solutions outdated. This environment demands continuous innovation and adaptation.

  3. IP Protection Difficulty: Given the abstract nature of AI algorithms and the requirement for important datasets, securing IP protection for AI innovations has unique challenges, including verifying originality and non-obviousness.

  4. Global IP Management: AI technologies often have global applications, needing a strategy that considers the varying IP laws and enforcement mechanisms in different countries.


  1. New Application Patenting: Unique applications or improvements of AI technology offer opportunities for new patents, providing a competitive edge and potential for IP monetization through licensing.

  2. Strategic Partnerships: Collaborating with existing patent holders or entering into licensing agreements can facilitate access to essential technologies while managing IP risks.

  3. Dedicated Datasets: Developing and utilizing unique datasets for AI training can become a valuable IP asset, offering competitive advantages that are difficult for others to replicate.

  4. Innovation Differentiation: Focusing on innovation within specific use cases or industries allows for differentiation in the market and the creation of a strong, protectable IP portfolio appropriated to those niches.

Why would a chosen approach be best suited?

  1. Enhanced Product Functionality: Similar to FAANG companies, using data to continually improve AI algorithms ensures the product stays relevant and effective in solving user problems.

  2. Personalization and User Experience: Leveraging user data allows for the customization of services and features, enhancing user satisfaction and engagement, the same as the fit experiences offered by Amazon and Netflix.

  3. Data Network Effects: More user engagement generates more data, which in turn improves the product for all users. This honest cycle enhances product value and market position.

  4. Privacy and Trust: Adopting a privacy-first approach in handling user data, as presented by Apple, builds user trust and compatibility with increasingly global data protection regulations.

  5. Scalability and Adaptability: A data-centric approach facilitates scalability and adaptability, enabling the product to grow in response to emerging user needs and technological advancements.


Crafting AI-Driven Software Success: Navigating Development, Bias Mitigation, and Ethical Innovation

What Are the Key Points in a Software Development Plan?

Implementing a software development plan, especially one that incorporates AI technologies, requires detailed planning and strategic foresight. The following key points are essential:

  1. Code and Data Repository Methodology Utilize version control systems like Git, with platforms such as GitHub, GitLab, etc to manage code and data changes over time. Establish clear guidelines for branching and merging strategies, ensuring that code changes are well-documented and traceable. Implement regular backups and secure storage solutions for data protection.

  2. Testing and Experimental Plan Develop a comprehensive testing strategy that includes unit tests, integration tests, system tests, and acceptance tests to ensure software quality at each development stage. Use continuous integration (CI) tools to automate the testing process and identify issues early. Define clear metrics for evaluating AI performance, user acceptance, and business impact, adapting testing plans to feedback and iterative improvements.

  3. GPU Experimental Setup Optimize the use of GPUs for machine learning tasks by selecting appropriate hardware or cloud-based services that match the computational needs. Implement resource management practices, such as queue systems for job scheduling, to maximize GPU utilization and minimize costs. Consider hybrid cloud solutions to scale resources according to demand efficiently.

  4. Budget Plan with Justification Prepare a detailed budget that covers all aspects of the software development process, including hardware, software, human resources, and unexpected contingencies. Use industry benchmarks and past project data to inform your estimates. Regularly review and adjust the budget based on project progress and financial analysis to ensure alignment with objectives and financial constraints.

How can we identify and address bias in AI systems?

An example of AI Cancer is bias. (The problem/issue is often referred to as 'cancer' metaphorically in AI discussions...) Bias Identification: AI systems can inherit biases present in their training data, leading to skewed or unfair outcomes. This can manifest in various ways, such as gender bias in recruitment tools or racial bias in facial recognition technologies.

Preventing or Mitigating Bias

  1. Diverse Data Sets: Ensure that the data used for training AI models is representative of diverse populations and scenarios. This involves not only including a wide range of data points but also actively seeking out and incorporating underrepresented groups.

  2. Bias Detection and Correction Techniques: Regularly employ bias detection methodologies to uncover and correct biases in AI models. This could involve statistical analysis, user feedback, and external audits. Techniques such as re-sampling, re-weighting, or using bias-correction algorithms can help adjust models to reduce bias.

  3. Transparent and Explainable AI: Invest in developing models that are transparent in their decision-making processes and can provide explanations for their outcomes. This transparency allows for easier identification and correction of biases.

  4. Ethical AI Governance: Establish an ethical AI framework within the organization, including guidelines, principles, and oversight committees dedicated to ensuring AI fairness and ethical considerations are integrated into all AI projects.

  5. Continuous Monitoring and Updating: Recognize that mitigating bias is an ongoing process. Continuously monitor AI systems for emergent biases and update models regularly to reflect new data and societal norms.

By implementing these strategies, organizations can proactively address the anticipated AI cancer of bias, ensuring that their AI systems operate more fairly and ethically, ultimately leading to more trustworthy and inclusive technology solutions.

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