AI-Driven Product Development Process

The Process. This framework is adapted from incubation programs we have run over fifteen years inside large organizations - programs structured around three core phases of building, with a fourth decision phase. We are now beginning to apply this same structure to AI refounding, and while it is early, the fit feels right. [10]

Phase 1: Design (4–6 weeks). The work begins with a structured workshops with senior leadership, working through each of the five vectors to assess the current state and define the target. The output is a refounding blueprint: a detailed report covering the AI-first opportunity, the recommended approach across all five dimensions, and a prioritized roadmap for what comes next.

A critical part of this phase is establishing what we call the foundational narrative. AI systems are only as effective as the clarity of the organization’s purpose. If a company cannot answer four questions - who do you serve, what problems do you solve, what gives you authenticity, and what gives you authority - then no amount of AI tooling will compensate. Narrative is the new source code. It determines what AI builds, how it communicates, and who it serves. Phase 1 must produce this clarity before anything else moves forward. [11]

Phase 2: Prototype (6–12 weeks). A small AI-first team is activated and focused on one high-leverage area identified in Phase 1. The goal is to build something real - a working prototype or service - that validates feasibility and demonstrates what AI-native speed and capability look like in practice. This is the phase that shifts the conversation from strategy to evidence.

Phase 3: Deploy (3–6 months). The team expands. The prototype integrates into actual operations. Customer-facing rollout begins. The focus is on execution speed, learning loops, and measurable impact. This is where the refounded operation starts to prove itself against the existing business - and where the organization begins to see what AI-first actually means in practice.

Phase 4: Decide. At this stage, one of three paths emerges. The AI-first operation integrates into the core business. It spins out as an independent entity. Or it shuts down and the learnings are redeployed elsewhere. Each outcome is valid. The framework is designed to generate clarity quickly enough that this decision is informed by real data, not speculation.

source: Henrik Werdelin, https://substack.com/@werdelin/p-193782467