Andrew Crossley

    AI and product development questions, answered

    Practical answers about applying AI inside real products and companies — what it costs, what it changes about the product role, and where it genuinely reduces cost or improves experience.

    Will AI replace product managers?

    No, but it is removing a large part of what product managers used to spend their week doing. AI already writes specs, summarises research, drafts tickets, analyses feedback and builds prototypes. What it cannot do is decide what a company should refuse to build, hold accountability for a metric, or persuade a room. Roles weighted towards documentation are shrinking; roles weighted towards judgement are becoming more valuable.

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    How do startups use AI?

    Startups use AI in three places: inside the product as a feature that completes a user task, inside operations to remove repeated manual work, and inside go-to-market for research, content and support triage. The highest-return use in a small company is usually operational — it lowers headcount pressure immediately, with no dependency on customers changing their behaviour.

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    Which AI tools should founders use?

    Founders need four categories, not forty tools: a frontier chat assistant for thinking and drafting, an AI-assisted build tool for prototypes and MVPs, a research and synthesis tool for customer and market work, and automation for repeated operational tasks. Pick one per category, use them daily for a month, and only add a fifth tool when a specific recurring task justifies it.

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    How much does it cost to build an AI application?

    An AI application costs roughly £10,000–£30,000 to build as a focused MVP on hosted models, and £50,000–£150,000 for a production system with retrieval, evaluation and integrations. Running cost matters more than build cost: expect £0.01–£0.30 of model spend per task. If a customer generates a hundred tasks a month, price accordingly — AI products fail on unit economics more often than on build budgets.

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    How can AI reduce operating costs?

    AI reduces operating costs by removing repeated, rules-light manual work: support triage and first-draft responses, data entry and reconciliation, research and reporting, and QA. Realistic savings in a small company are 20-40% of the time spent on those specific tasks, not of total headcount cost. The saving is real only if the reclaimed hours are redeployed rather than absorbed.

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    How can AI improve customer experience?

    AI improves customer experience mainly by shortening time-to-value and removing waiting: instant answers grounded in your own documentation, faster onboarding through automated setup, proactive detection of stuck users, and personalised guidance based on what similar accounts did next. It damages experience when it hides humans, guesses confidently, or personalises in ways the customer did not expect.

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    THE FRAMEWORK

    The Crossley Method: idea to first revenue in seven stages

    See the full method
    1. STAGE 1DiscoverWeek 1
    2. STAGE 2ValidateWeek 2
    3. STAGE 3PrototypeWeek 3
    4. STAGE 4Build MVPWeeks 3-4
    5. STAGE 5LaunchWeek 5
    6. STAGE 6First RevenueWeek 6
    7. STAGE 7ScaleOngoing