The AI MVP Trap

Why "ship fast and optimize later" works everywhere except AI and what to do instead

I've been in product management for over 10 years and probably made most product mistakes there are to make.

The first one was the classic: build in isolation until you think the product is feature-complete, then show it to customers. I learned that lesson the expensive way in traditional SaaS. By the time we got customer feedback, refactoring cost more than rebuilding from scratch.

So I learned. I joined the MVP train.

Build the minimum viable product. Prove the value prop with the smallest possible thing. Don't waste engineering resources on unvalidated hypotheses. Ship fast, learn fast, iterate.

And it worked. For years, this worked. In fintech. In payments. In every deterministic product I built.

Then came the AI era.

And suddenly, everyone's adopting the same playbook: "Let's ship something, deploy it, and see how customers use it. See what they ask. See how the AI behaves."

This sounds like good product practice. It feels like the MVP approach. Fast. Lean. Customer-focused.

But here's what I've learned after building AI products and working with teams across fintech, healthtech, and beyond:

This approach can silently kill your product.

The illusion of success

Here's the thing about AI that nobody tells you:

💡

AI always returns something.

In traditional software, your product fails visibly when it's broken.

Users click a button and get an error. The page doesn't load. The transaction fails. They complain. You see it in your logs. The feedback loop is immediate and obvious.

You fix it. You iterate. You learn.

But AI doesn't work this way.

It doesn't crash. It doesn't throw errors. It doesn't fail visibly.

It just... responds. Confidently. Whether it's right or completely wrong.