Latest / In The Loop / EP16 - The Top Five AI Features SaaS Companies Are Shipping In 2025 (And Why They Work)
Transcript
- 0:00By the end of this episode, you'll understand the five
- 0:02categories of AI features that technology companies are
- 0:05actually launching in 2025, from small improvements to AI native
- 0:10applications to AI first products.
- 0:13As inspired to do this episode after a great piece by Rich
- 0:15Holmes on the Department of Products, Substack.
- 0:17It was published last week and analysed 25 big product launches
- 0:21by massive companies like Google, Notion, Microsoft,
- 0:24Stripe, LinkedIn, and many, many more.
- 0:26I've then shaped this thinking a little bit based on what we're
- 0:29seeing in the market today because we're working with many
- 0:32technology companies and helping them build AI features faster.
- 0:35This is In the Loop with Jack Horton and hope you enjoy the
- 0:38show. The first category that I'm
- 0:50going to discuss is called UX enhancers or embedded UX
- 0:54enhancers. And I guess what distinguishes
- 0:56this category from other types of features is that they're
- 0:59either often completely invisible in the background and
- 1:02just pop up and appear at the right moment.
- 1:04So they'll appear contextually with small pop ups and widgets
- 1:08that just help me do something or solve a bit of a pain point
- 1:11that I would normally experience when using that type of
- 1:13technology solution. And as Rich Holmes broke down in
- 1:16his piece, these features are not trying to get users to
- 1:19engage with the products in a completely new way.
- 1:21They're just solving smaller jobs and tasks for people that
- 1:25are really just annoying and I guess work as a layer on top of
- 1:29that user interface that's already been built.
- 1:33So let's discuss some examples that will help you understand
- 1:36what I mean here. Kindle launched A recap feature
- 1:39which perfectly exemplifies what we're talking about.
- 1:43It aimed at solving the challenge and the problem of
- 1:46narrative continuity between books.
- 1:48So that moment maybe when you pick up a book in a series many,
- 1:52many months after reading the last one.
- 1:53And so then you kind of forget a lot about what's happened and
- 1:57maybe therefore just don't even pick up that book and you stop
- 1:59reading it all together. Rather than forcing people to,
- 2:02say, go online, read a summary or try and recap what they
- 2:06actually read previously, or maybe even abandoned the series
- 2:09altogether, Kindle now generates automatically this concise
- 2:12little summary of the previous book as soon as you open a new
- 2:15one. What makes this quite clever is
- 2:16that it's contextually relevant. It only really appears when it's
- 2:20actually needed and doesn't interrupt the core reading
- 2:23experience of a person, doesn't ask readers to change how they
- 2:26use the product. It just removes a simple pain
- 2:29point that's annoying and does so that adds very little new
- 2:33user interface or buttons to press or screens to visit.
- 2:36Another great example mentioned by Rich Holmes was Google Chrome
- 2:40who recently launched an on device AI system using their
- 2:43Gemini model. And essentially what it's doing
- 2:45is trying to catch security threats in real time.
- 2:47So when it detects something suspicious, maybe like a support
- 2:50scam or phishing attempt, it just pops up and tells you and
- 2:54it doesn't interrupt your browsing experience.
- 2:57It's not trying to create a separate feature area or product
- 3:00area that makes you actively have to engage with it.
- 3:03It's just a widget that is directly integrated into that
- 3:06normal browsing experience. Another great example was
- 3:09referenced by a fantastic product thinker by a Cash Gupta
- 3:13and he talks about a company called Ateo.
- 3:15So Ateo, for those that don't know it is ACRM.
- 3:18So helping people manage sales deals.
- 3:20And what they've done really cleverly is implement AI in a
- 3:23way that just super helpful and they're growing really fast in
- 3:27what is an extremely crowded market and they're up against
- 3:30the likes of Salesforce and Deals and winning.
- 3:32An example of this enhanced UX embedded UXAI feature is that
- 3:36when a user creates maybe a new automation on their platform,
- 3:41the system automatically summarises the automation and
- 3:45gives it a description and a name and a summary based on what
- 3:47it's supposed to be doing. The user isn't having to do
- 3:49anything, it's just a small thing at the top left of the
- 3:51screen. There's no flashing AI badge, no
- 3:54special interface you have to learn.
- 3:56It's just a small amount of magic and delight when users
- 3:59realize that what was previously a very tedious step is now just
- 4:02done for them. Another example is by Atio
- 4:05again. So when someone responds to a
- 4:08e-mail coming through their system and says I'm busy all
- 4:11week to the salesperson at your system, automatically adjust the
- 4:15scheduling. So immediately sending out
- 4:18another time and another option for them.
- 4:20Again, super simple, but really helpful.
- 4:22And so to bring it back to my point, this first category of
- 4:24enhanced UX and embedded UX often feels invisible in the
- 4:28background and pops up with a widget on your screen to give
- 4:31you that help you need. And as Akash got to put it,
- 4:35these companies instead of saying to themselves how do we
- 4:37add AI to everything, it's actually them asking how come we
- 4:41add AI that makes this experience just feel a bit
- 4:44magical. The former leads to random
- 4:47bolted on capabilities that feel misjointed and us as users feel
- 4:52like why have they done this, this is pointless.
- 4:55Whereas the latter question drives a complete re imagination
- 4:58of a products experience for people.
- 5:00And the common thread here is that all of these examples are
- 5:04an integration with existing experiences.
- 5:06They don't ask a user to fundamentally change their
- 5:08behaviour. And these implementations often
- 5:10represent one of the lowest technical barriers to entry for
- 5:13new AI features for a company because they're simply improving
- 5:17what exists already. But meanwhile, it's not a low
- 5:19impact change. These are really nice touches
- 5:21that just feel magical to a person.
- 5:23And the beauty of this is that in essence, these are just an AI
- 5:27agent, a workflow, a set of tools and ability to trigger
- 5:30based on a thing that happens in their product.
- 5:33Instead of that output from an agent and a workflow being text
- 5:37in a chat component or in a chat widget like ChatGPT or another
- 5:41chat interface, it just appears in their existing user
- 5:44interface. So if I take that down a level
- 5:46and make this really tangible by explaining how an Ato does
- 5:49something like that, first an agent is created which loves to
- 5:53summarize things. That's its purpose.
- 5:55It also will respond. Its text responses will be
- 5:59structured in very concise ways with clear bullet points for
- 6:03example, because it loves to have very concise summaries.
- 6:05It then has a set of skills too, which are basically workflows.
- 6:09These workflows will trigger based on a user in their
- 6:11platform doing a specific thing. In this case, it's them creating
- 6:15an automation in RTO's platform. The agent then recognizes that a
- 6:18user's just done this automation and immediately triggers It
- 6:22fires off maybe a signal to the agent and says time to do your
- 6:25summarization. And then the agent will decide
- 6:27to use the workflow it's got access to.
- 6:29So the summarization workflow and step one of that workflow
- 6:32will be to trigger based on a user doing something.
- 6:34As I said, Step 2 might be to summarize the automation.
- 6:38Step 3 was to reorganize it and rewrite it.
- 6:41Step 4 was to publish it. And again, that summary doesn't
- 6:44appear in a conversation or a chat window.
- 6:46It appears in a user interface of Attio or a little widget pops
- 6:49up and says here's the summary. I understand this so intimately
- 6:52because we're actually launching something that does this type of
- 6:55thing next month. So workflow builder plus new
- 6:58widgets that can appear and be embedded on SAS Company's
- 7:01platforms anyway, so let's move on to another category of
- 7:03feature. This is agents that control
- 7:05existing functionality on a platform.
- 7:08So this second category really represents a very fundamental
- 7:11shift in how users will interact with software that's already
- 7:15been built. So agents that don't just, you
- 7:17know, answer a user's question, but actively controls and
- 7:21operates an interface based on what a user needs to complete.
- 7:25So rather than a user navigating very complex user interface,
- 7:28it's quite frustrating. These agents allow people to
- 7:33speak to a, well, what is a chat bot essentially in natural
- 7:36language and the agent just does it for them by controlling the
- 7:39features on that application. So a great example here is what
- 7:43Stripe just launched, which is their dashboard assistant.
- 7:45Again, this was discussed by Rich Holmes in the Department of
- 7:47Products sub stack article. So this dashboard assistant or
- 7:50agent enables someone like a merchant using Stripe, so a
- 7:54vendor that sells things to simply type refund transaction
- 7:57ABC 12345 and then the agent will just navigate to the
- 8:02appropriate section of the dashboard, locate the
- 8:03transaction, kick off the refund process.
- 8:06Maybe in the conversation we'll come back to the human and say,
- 8:09do you want me to process this? Press confirm and it's done.
- 8:12So suddenly creating products, updating pricing and managing
- 8:15admin tasks using Stripes existing interface is really
- 8:19simple. And a key take away here is that
- 8:22I guess for decades companies have built products around user
- 8:26interface with buttons and forms and drop downs and things like
- 8:30that. And as a user, we have to learn
- 8:33where something's located on their app, how to complete
- 8:36certain tasks using the forms they provide.
- 8:39And what often starts as an extremely innovative solution
- 8:44often becomes incredibly frustrating for us as users
- 8:47because we get so used to it. We now expect something better.
- 8:50And that's why agents controlling existing features
- 8:52that a company's already built is so, so magical.
- 8:55Users don't always have to go and find out how to create and
- 8:58send a financial report which is located somewhere in Stripes
- 9:02application. They just need to have an agent
- 9:04on the side ask it a question and say where is this thing gets
- 9:09taken to that area and says now complete and send that financial
- 9:12report to X people. Because the features are already
- 9:16built to do that. The agent can control those
- 9:18features and execute that task. So for SAS companies that are
- 9:21really big and have been around for a while, this approach
- 9:24offers a really compelling strategy to compete with these
- 9:28agent for SAS applications and SAS startups that are launching
- 9:31pretty much every week. And rather than having to
- 9:33rebuild every inch of their experience from scratch, they
- 9:36can layer on these agent interfaces on top of their
- 9:40existing functionality, which leverages their core IP and
- 9:44technological advantage that they've built up over many
- 9:47years, whilst delivering a conversational experience and
- 9:51interface that users now want. And This is why I'm so excited
- 9:55to launch a closed invite only beta programme of this
- 9:58functionality in late June, early July.
- 10:00It's something that I think is going to be the future of many
- 10:02SAS applications. And I think this is going to be
- 10:05one of the core important strategies our SAS customers are
- 10:08going to have to take over this next 12 months as they start to
- 10:10launch brand new products and AI experiences throughout the
- 10:14course of the next few years. And I'll come on to what I mean
- 10:16by this in just a few minutes. Now if I was in the product team
- 10:19at one of these companies, I'd be asking myself and the team
- 10:22which part of our product requires the most training,
- 10:25which parts of our product gets the most questions asked about
- 10:27it. And how can we take away that
- 10:30complexity with natural language agents that control that
- 10:33experience. So it represents an extremely
- 10:36high quality opportunity for agents that control features.
- 10:39Anyway, moving on to the third type of AI feature that we're
- 10:43seeing getting launched. This is task or use case or role
- 10:47based agents, which are able to automate specific tasks in
- 10:50separate systems. What distinguishes this category
- 10:53from others is that it's very laser focused on specific jobs
- 10:56to be done or job function, job role or a task.
- 11:00For example, the sales outreach agent.
- 11:02So I'll dig into a couple of examples here.
- 11:04A sales software called Salesloft recently launched a
- 11:07bunch of agents and essentially this tool, as it's called
- 11:10product offering, help sales reps make calls to people to
- 11:13sell things. And now they launched these
- 11:15agents to help these salespeople do jobs that currently sales off
- 11:20don't really support. For example, the agents they've
- 11:23launched can read into Salesforce or HubSpot and do
- 11:27things in there. It can also push things into
- 11:30communication channels. It can also write new emails for
- 11:32them. So an agent that does many of
- 11:34the specific tasks that they would have to do at work.
- 11:37Linkedin's approach is also another good example.
- 11:39They've launched multiple specialized agents for different
- 11:42user segments of their product. Their latest is a dedicated
- 11:45interview preparation agent on their platform that helps
- 11:48basically job seekers practice for interviews.
- 11:51And what's particularly interesting about these use case
- 11:54or domain specific agents is that they enable these
- 11:58technology companies to extend their value proposition and
- 12:02their offering beyond their core product functionality.
- 12:07So for example, Microsoft launched their deep research
- 12:10agent that allows people to research all of their internal
- 12:13SharePoint information, for example, but also allows them to
- 12:17search externally through web sources and the Internet.
- 12:21This would have been the domain of Google, not Microsoft.
- 12:24So what's really interesting here is companies are suddenly
- 12:26able to expand into other market segments, jobs to be done that
- 12:31they previously would have had to build all of this user
- 12:33interface around and would have taken years to deliver.
- 12:36But now they can just build a single agent, launch it, sell
- 12:39it, and deliver value quite fast.
- 12:40Now good product teams at these companies should really start by
- 12:43identifying different user segments with specific recurring
- 12:47needs. So ask themselves what are the
- 12:49highest value jobs to be done that someone would love to give
- 12:53away? And importantly, what do we
- 12:54think AI could do? Well so certain things AI will
- 12:58always be or might be for a long time just rubbish up.
- 13:02So AI might be able to produce lots of content, but it often
- 13:05lacks context. So really think through what
- 13:07they can be really good at. And this really would help
- 13:11prioritize worthy investments in AI agents for specific tasks or
- 13:16job functions. So we've had over say 200 AI
- 13:19coaches and tutors built on our product and launched into other
- 13:23technology company solutions. So Type 4 I'm going to spend
- 13:25very little time on because it kind of blends into other
- 13:27categories. But Type 4 really is Gen.
- 13:30AI first features. This was covered again by Rich
- 13:33Holmes in the Department of Product article.
- 13:35And a really good example here is how Google or Google Hangouts
- 13:39should I say, has just launched their Generate with AI feature.
- 13:42So you can now change your background but generate it with
- 13:45AI language models. So you can ask it to create a
- 13:48pirate background or a football field background.
- 13:51Another great example is Spotify, which launched the AIDJ
- 13:53feature and now you can speak to it and ask it to produce a
- 13:57playlist for certain moods or certain types of situations.
- 14:01Again, you could argue this blends into other categories and
- 14:03hence I'm not going to spend too much time in this episode on
- 14:06that. I'm now going to move on to the
- 14:07final category we're seeing getting launched in the market
- 14:10today, and that's AI native stand alone applications.
- 14:13Now, these aren't upgrades to existing products.
- 14:15They are entirely new experiences built from the
- 14:19ground up with AI capabilities. And what distinguishes these
- 14:22products from other types of features is that they're a
- 14:26fundamental RE architecture and rethinking about how an
- 14:29application can work. These are often reimagined
- 14:32entire product categories based on what becomes possible from
- 14:35AI. And a great example of this is
- 14:37Google's Notebook LM, which is discussed by Richard Holmes.
- 14:41And it isn't just an enhancement by Google to, let's say, the
- 14:45Google drives features or a note taking up.
- 14:48It's a fundamentally new way of looking and experiencing
- 14:51information. You can quite literally upload
- 14:53books, videos, documents and turn it into a podcast.
- 14:57You can extract insights, identify patterns, whatever you
- 15:00need to do, and really enables you to have a conversation with
- 15:03that piece of information. You also see this pattern in
- 15:06marketing tools like Jasper and Copy AI, which are marketing
- 15:09tools built around AI experiences.
- 15:11And they're not just adding AI to a Google doc or or a
- 15:15Microsoft Word document. They're creating entirely new
- 15:18experiences and solutions to create content optimized for AI
- 15:22workflows. These applications aren't
- 15:25constrained by legacy approaches or user expectations.
- 15:29They're completely free to reimagine how something should
- 15:33work now. For big and established
- 15:34technology companies with 10s of thousands of customers, these
- 15:38stand alone applications represent both the probably
- 15:42greatest opportunity long term, but also the greatest risk.
- 15:44And that's because an AI company or an AI startup that launches
- 15:48one of these types of new products that are reimagined, it
- 15:51could make your entire category or even set of products
- 15:53obsolete. But meanwhile, it can also
- 15:56present a huge opportunity for you as an established player to
- 16:00launch a new product into the market and completely dominate.
- 16:03But they also open up new possibilities for big companies
- 16:06to launch offerings that previously weren't very
- 16:09feasible. Fundamentally, this is a long
- 16:11term play that some companies will do so many companies won't
- 16:14be able to do because of resource constraint, because of
- 16:17how much risk is involved and eventually will probably acquire
- 16:20other start-ups. Anyway, that's it for today.
- 16:23I've gone through those top five categories.
- 16:25I hope that was interesting. Thanks for listening and I'm
- 16:28going to see you next week.