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AI changes *Nothing* — Dax Raad, OpenCode

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AI changes *Nothing* — Dax Raad, OpenCode

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467 segments

0:00

So, I was told that this could be

0:02

between five and 55 minutes long, quite

0:05

a range, and that I could yap and go on

0:07

whatever side tangent I wanted, and

0:09

it'll be fine. So, I'm just prepping you

0:12

and giving you some explanation for why

0:13

this is the way it is. Uh, so my name is

0:16

Dax. I work on a project called Open

0:18

Code. It is one of the most used coding

0:20

agents out there. Uh, it's fully open

0:22

source, works with any model. Um, every

0:26

other company likes to say we have the

0:28

smartest coding agent. Well, we've got

0:30

the hottest coding agent. You go take a

0:32

look at it. It's a great experience. Uh,

0:34

awesome UX, totally themeable,

0:36

personalizable, fun fun project to use.

0:39

Uh, that's all the shilling I'm going to

0:41

do for now. Um, but let's get into the

0:43

meat of this talk. So, what I want to

0:45

talk about today is why AI is not going

0:47

to make you a winner. Um, we're at an AI

0:50

conference. There's a ton of AI content

0:52

out there. It's all anyone's ever

0:53

talking about these days. You got lots

0:55

of people saying that this is the

0:57

future. It changes everything. The way

1:01

like software development is going to

1:03

change. Software development is not

1:04

going to exist. You've got all these

1:05

crazy proclamations about how suddenly

1:08

everything is different and if you hop

1:10

on, you're going to be able to get the

1:11

benefits. Um, and some of that is, you

1:14

know, there's some truth to that to some

1:16

degree, but I want to focus on the stuff

1:19

that hasn't changed, the stuff that AI

1:22

is not going to help you with. Uh, the

1:24

things that are critical to make a

1:26

successful product that people use,

1:30

these things haven't changed. They're

1:32

not going to change anytime soon. And to

1:34

be honest, AI has not really helped us

1:37

with them. So, I'm going to talk about

1:39

things in terms of funnel. If you think

1:41

about I'm making a product, I've got

1:43

users that I want to start using my

1:44

product. They start from knowing nothing

1:47

about you to hearing about you to trying

1:49

your product to liking it to then like

1:51

fully converting. Uh if we think about

1:53

that journey, there are critical

1:55

moments. I'm going to identify three

1:56

critical moments that you need to focus

1:59

on. And

2:01

it's this has been true since for I mean

2:04

my whole career. It hasn't changed. It's

2:06

the things that I think about every

2:08

single day that I struggle with. uh

2:10

despite all the experience I have, it's

2:12

still very very challenging and the AI

2:15

stuff really hasn't done much for me.

2:17

So, let's yeah, let's get started with

2:18

the first one. So, the absolute top of

2:21

the funnel is marketing. And I'm going

2:23

to say off the bat that what I'm about

2:24

to say, you're going to feel a ton of

2:26

resistance to. So, I'm going to preface

2:28

that off the bat cuz I remember when I

2:31

felt that way. Uh and it took a lot of

2:33

effort in getting over like my own

2:35

psychology uh to do this part. Well, um,

2:39

the idea behind marketing is simple. You

2:41

have someone that's going about their

2:43

day. They got their problems. They got

2:45

their worries. They're focused on their

2:46

life. They do not give a about you

2:50

or what you're doing. You have to figure

2:52

out how to get them to stop in their

2:53

tracks, drop everything else that they

2:56

have, and look at you and think about

2:59

you and look into what you're offering

3:02

them. This is a really, really high bar

3:04

to clear. Um, and I think when I talk

3:08

about it in this way, the reason people

3:09

feel resistance is because most of us

3:11

aren't good at this. You know, it's a

3:13

skill like anything else, you are not

3:16

going to be amazing at it from day one.

3:18

It's way outside your comfort zone.

3:20

Unfortunately, a lot of people's

3:21

reactions to that truth is that they

3:24

feel like they shouldn't have to deal

3:26

with this problem. Uh, there's a lot of

3:28

thoughts like, "Hey, if my product is

3:29

good enough, it'll sell itself. Um, I

3:32

don't need to do marketing. I don't need

3:34

to do things that are gimmicky. You

3:36

know, I'm above that. The truth is,

3:38

there's people that make products that

3:40

are better than anything you're ever

3:42

going to do in your whole life. Like the

3:43

absolute best products out there, they

3:46

still have to think about this problem.

3:48

So, if they're not too good to think

3:50

about, hey, how do I get people's

3:51

attention? Neither are you. Neither am

3:53

I. Like, we all just just got to do it.

3:55

So, I might as well start to get good at

3:56

it. Um, the way that I like to think

3:58

about it is

4:00

you need to do things that have a shot

4:05

at being shared. So, if you think about

4:08

standard marketing, people will write a

4:10

blog post about a new feature or they'll

4:13

hire an influencer to like talk about

4:15

the new feature or just kind of the

4:17

things that pretty much anyone can do.

4:19

Uh, you know, everyone just buys

4:20

billboards these days for some reason.

4:23

The thing with these efforts are they

4:27

make sense, you know, you're like

4:29

telling people about the thing you

4:30

built, but there's basically zero chance

4:33

that somebody sees that and they're

4:35

like, "Oh yeah, I got to show my friends

4:37

this blog post about this 76 feature,

4:40

this product release, right? No one's

4:42

getting excited about that. They're

4:44

probably going to scroll right past." I

4:45

mean, you know what people are like

4:46

these days. You're all on TikTok. I know

4:49

your attention spans are just basically

4:50

deteriorating into nothing. Uh, no one

4:53

can focus on something that's boring.

4:55

Um, so none of these things really count

4:58

as top level marketing. They're not

5:00

stopping someone who doesn't know about

5:02

you to start thinking about you. Uh, the

5:04

key here is to come up with something

5:07

that someone's going to see and they're

5:09

going to think it's so crazy or so funny

5:12

or so uh, deep or so, you know, it it

5:16

strikes a chord where they're like, I

5:17

got to show this to my friends, to my

5:19

co-workers. uh can you believe that they

5:22

did this? You know, you want to elicit

5:23

that type of uh emotion from someone.

5:27

The as simple as that bar is, you know,

5:30

it's very easy to tell whether

5:31

something's going to clear that bar or

5:32

not. It's extremely hard to come up with

5:34

ideas that do clear that bar. Um so

5:37

that's the challenge. You got to be

5:38

creative. You got to come up with ideas

5:40

that work. Uh and you're going to miss a

5:42

lot. It's just like swinging at

5:44

products. You're aiming for a hit.

5:46

You're going to swing a lot and a lot of

5:47

times you're going to miss. That's true

5:49

of marketing as well. Don't bother

5:51

taking shots that never have a chance of

5:53

being a hit, right? That's just a waste

5:54

of time. Um, it's okay to try nine times

5:57

on something embarrassing or crazy and

6:00

doesn't work, but that one that hits,

6:02

it's going to be seen by a million

6:04

people and your target audience is going

6:06

to be in that group or connected to that

6:08

group. Uh, and if you repeat this over

6:10

and over, that compounds, you get better

6:12

at it. Top level marketing, amazing. The

6:15

reason AI doesn't help here is it's all

6:16

about creativity. I have not had a

6:18

single good idea come out of AI. Even

6:21

[snorts] when I use it as like a

6:23

brainstorming partner, it like just gets

6:25

super corny. Uh just it just can't come

6:27

with anything that's cool. Like it you

6:29

can't do cool. Uh and top level

6:31

marketing is about is about cool. And

6:33

that sounds like an innate thing, but it

6:35

is a skill that that you can learn.

6:37

Okay. So now that you have someone that

6:39

is interested in what you're doing, you

6:41

got their attention. The next thing to

6:44

figure out is how to get them to the aha

6:47

moment. So, if you think about great

6:49

products, there's a moment where you've

6:52

had a certain interaction with the

6:53

product where it clicked for you. You

6:55

got what it was about. You were sold on

6:57

it. Uh, and you're like, "This is

7:00

awesome." And even if it wasn't for you,

7:02

you might think, "This isn't for me, but

7:04

this is cool enough that if I know

7:06

someone that it is for, I'm going to

7:07

recommend it to them." So, that is the

7:09

aha moment. You need to figure out what

7:12

is the singular aha moment in your

7:14

product and eliminate friction

7:18

ruthlessly to get someone to that aha

7:20

moment as fast as possible. So the

7:23

challenges here are

7:25

you might feel like oh there's a lot of

7:27

good features in my app. You know I want

7:28

them to know about features A B C. You

7:31

you have to be brutal. You kind of have

7:32

to like you know kill your children

7:33

here. You have to pick the one that

7:35

matters the most and deprioritize

7:38

everything else and look at every single

7:40

step that it's going to take for someone

7:42

to get there and cut it. When I use

7:46

products, like when someone sends me

7:47

like, oh, like I'm building this thing,

7:49

let me try it. The feeling like I get

7:52

this crazy amount of pain cuz I see all

7:55

the steps that it takes before I even

7:57

get to the point where I even understand

7:59

what the heck they're doing. Uh, and I

8:02

know that at each point they're losing

8:05

10% of their people, 20% of their

8:07

people. And I know that the percentage

8:08

of people making it to the end are so

8:11

small before we can even talk about

8:12

whether, hey, is the thing you're

8:14

building that useful? Uh, this is

8:17

another thing that almost no companies

8:19

get, right? Like, think about when

8:20

you're signing up for something, they

8:22

ask such stupid up front before you

8:24

even know if you want the thing. They're

8:26

like, "How big is your company? Like,

8:27

how many employees do you have? What's

8:28

your title?" like who cares about any of

8:30

this? You got to cut all of that out to

8:33

get people to the moment that that you

8:35

care about. And if you're able to do

8:36

this, that's how you build a product

8:39

that, you know, really starts to take

8:40

off, uh, really starts to grow itself.

8:43

All that work you did for the top level

8:45

marketing, if only like 3% of people are

8:47

getting to the aha moment, uh, you know,

8:50

that that's a total waste. The the hard

8:53

part, the other hard part is like maybe

8:54

you don't even have an aha moment. Um,

8:57

that makes you think a lot about, hey,

8:58

what am I even building? What am I

9:00

doing? Is is this is this worth the

9:02

effort and pain of trying to build

9:03

something. Uh, and I think it's worth

9:06

looking at some of the most successful

9:08

products of all time. Uh, some of them

9:10

have some like crazy crazy aha moments,

9:12

right? You think about chat GPT, which

9:14

is the most successful product, I would

9:16

say, consumer product ever that has

9:18

existed in in our lifetime. uh they give

9:22

you an input box where you can type

9:24

anything and you're going to get like a

9:26

humanlike interaction as a response.

9:28

Like literally anything in the world you

9:29

can type. That's like an insane aha

9:32

moment, right? The moment you see that,

9:33

like the dumbest person in the world can

9:36

use that, they can be like, "Yeah, this

9:37

is awesome. I get it." Uh it's very very

9:39

very compelling. Uh on the social media

9:42

side, right? You have something like

9:44

Facebook. uh you have a crush and you

9:46

can like send a poke to your crush where

9:48

you're like kind of flirting but it's

9:49

deniable. Instant aha moment like you

9:52

are sold on this product. You're going

9:54

to keep using it. Um so those are like

9:56

very extreme examples but every product

9:59

should have a singular moment where

10:00

you're like this is the reason I exist.

10:02

This is the reason why we're doing all

10:04

of this. Uh people that experience it

10:07

should get it. Um, again, the reason why

10:10

AI doesn't help with any of this is,

10:11

again, it goes back to creativity and

10:13

really understanding this space. Uh,

10:16

spend a lot of time thinking about it,

10:17

[clears throat] like gaining clarity,

10:18

like thinking about positioning, uh,

10:20

thinking about what you're doing unique

10:21

that nobody else is doing. All very,

10:24

very hard. You know, just cuz we have AI

10:26

that we can talk to, it's not suddenly

10:28

going to turn you into a winner at

10:30

making like, you know, amazing aha

10:31

moments. the people that are good at

10:32

that very very few people in the world

10:35

are going to keep doing that and keep

10:37

crushing the rest of us. Uh so again

10:40

another thing that we have no choice but

10:42

to try to get good at. So the last part

10:45

of this funnel is the retention side. So

10:48

let's say you've gotten the attention of

10:49

someone. You managed to get them to the

10:51

aha moment. They like what you're doing.

10:53

They're now like using your product. How

10:55

do you retain them for life? Like how do

10:57

you get a customer forever? Uh if you

11:00

aren't getting customers forever, you're

11:02

just leaking people through and you're

11:04

going to hit a ceiling on your business

11:06

and it's not going to be fun. Like it's

11:07

it's annoying when you grow on one side

11:09

but you're leaking on the other side.

11:11

You really want to get people for life.

11:12

So that number of customers you're

11:15

serving is compounding over time. Um

11:17

retention is interesting because you

11:19

have to think about it kind of

11:20

differently than the last two phases

11:23

because it's all about power users,

11:26

right? It's all about someone that's

11:27

using your product for a while that's

11:28

pushing the limits of what they can do

11:30

with it. They want things to be more

11:31

configurable. Uh they want more advanced

11:33

features. You have uh teams using it.

11:36

You have larger enterprises using it.

11:38

They have very specific needs. How do

11:40

you build things that support all of

11:43

that without sacrificing all the stuff

11:45

we did in the first two phases of

11:47

keeping things simple, having a very

11:49

streamlined initial first experience? Uh

11:52

it's hard to juggle both of these both

11:54

of these things. uh we've kind of been

11:57

forced to think about this because we

11:58

have been doing open source work uh for

12:01

me personally it's been like five or six

12:03

years now. Um open source products are

12:05

interesting because they are used by

12:07

both like a random indiv individual

12:09

hobbyists that just want something that

12:11

they can use uh that's simple and free

12:13

and whatever. Uh but also open source

12:17

projects are some of the best choices

12:19

for like mega enterprise companies,

12:21

right? These giant companies uh

12:24

typically want to run everything

12:25

themselves. They want to host everything

12:26

themselves. They're very sensitive about

12:29

uh data going anywhere else. Uh so open

12:31

source projects have this requirement of

12:34

supporting both like the really simple

12:36

case and both the really advanced case.

12:38

Uh the way we go about this is there's

12:41

kind of this there's like this I would

12:44

say misconception that products can

12:45

either be simple or they can be capable

12:48

and they'll say like oh we're like Apple

12:51

we're building a simple experience but

12:52

what they're usually doing is just

12:54

building an incapable experience and

12:55

they're saying that oh we're like Apple

12:58

cuz it's the simple experience. There's

13:00

actually no trade-off between these two

13:01

things. You can build both a simple and

13:04

capable experience. Uh the way to do

13:07

this, it's just it's just more work up

13:09

front, right? You think about a feature

13:11

you want to build that uh makes a lot of

13:13

sense for users. Instead of building the

13:15

feature, you kind of have to build

13:17

primitives that can be assembled into

13:19

that feature. So you think about the

13:21

primitive layers first, make them uh

13:24

pretty wide scoping, u make them really

13:27

advanced, really powerful. Then you take

13:30

those primitives and assemble your

13:31

simple experience that 99% of people

13:34

experience. Uh the what the nice thing

13:37

about doing it in this order is when

13:40

they get more complex, you can give them

13:42

more direct access to these underlying

13:43

primitives. They can get more advanced.

13:46

They can flex and bend your product and

13:48

hopefully they never need to outgrow it,

13:50

right? Because the key here is you don't

13:51

want to build a product that people

13:53

outgrow. uh because you're effectively

13:55

serving as a funnel for someone else's

13:57

product, whatever they whatever they

13:58

outgrow into. Uh so I really like

14:01

building things where think about like

14:04

everything we ever want to do and build

14:06

a set of primitives that can eventually

14:08

do those things and assemble our product

14:10

using those primitives. Uh this is

14:12

another area where AI does not really

14:14

help me because

14:17

it's like so hard, right? the building

14:20

and trying to build these set of

14:22

primitives is how you even figure out

14:23

what primitives to need primitives you

14:25

need and what you're trying to do. uh

14:27

that exploration process like sure you

14:29

can like again chat with AI brainstorm

14:31

but this isn't the type of thing that

14:34

like you to even like communicate to AI

14:37

what you want to do you have to

14:38

understand it really well yourself and

14:40

that's a task a task is to understand

14:41

what you're trying to do really really

14:43

well uh so this is a again a very

14:46

critical part of making a successful

14:48

product um

14:51

AI is not going to suddenly make you

14:53

amazing at it just it you just can't it

14:55

takes a lot of work, time, energy, uh,

15:00

until your brain can wrap its head

15:01

around the space you're working to

15:03

design the right set of primitives that

15:04

can kind of scale to to all these

15:06

situations. All right, so the last thing

15:08

I'll leave you all with is if you go and

15:10

try out Open Code, uh, and you go

15:12

through the full process that I just

15:13

talked about, you're going to find a lot

15:15

to criticize. You're going to be like,

15:16

he's not following his own advice here,

15:18

here, and here. And the reason that's

15:20

happening is even though I can

15:22

understand all this stuff and to the

15:24

degree where I can talk about it and

15:26

articulate it, it's just hard. It's very

15:29

hard to follow this advice. It's simple

15:32

to understand, I think. But executing it

15:34

well daytoday,

15:36

there's no getting around the fact that

15:38

it's enormously difficult and it takes

15:40

so much out of a person, a team to line

15:44

everything up to get it all working

15:46

perfectly right. Uh AI is amazing and

15:50

lets us do all kinds of things that we

15:52

couldn't do before. Does not save us

15:55

from that day-to-day pain uh in trying

15:58

to make something that's great. So yeah,

16:02

I wanted to do a talk that was about AI,

16:04

but kind of I'm tired of people feeling

16:06

like suddenly the tables are going to

16:08

turn and things are going to be easier.

16:10

They're not easier. My life is just as

16:12

hard as it's ever been. It's just as

16:14

hard as it's ever been to do something

16:15

amazing. But it's also where all the fun

16:18

comes from, where all the purpose comes

16:20

from. And people are worried about like,

16:21

oh, people are going to like not have

16:22

any purpose with with AI. Uh, no, that's

16:25

not going to be a problem because, you

16:27

know, things are just as hard as as they

16:28

ever were. So, I hope that inspires you,

16:31

scares you, I don't know, makes you sad,

16:33

makes you happy. I don't know how you're

16:34

going to feel about this, but that's all

16:36

I have. Thanks for thanks for listening.

16:38

>> [clears throat]

Interactive Summary

Dax, the developer of the Open Code project, argues that despite the hype surrounding AI, it does not inherently make building a successful product easier. He breaks down the product journey into three critical stages—marketing (getting initial attention), the 'aha' moment (demonstrating value), and retention (scaling for power users)—explaining that success in these areas relies on fundamental skills like creativity and deep understanding, which AI currently cannot replicate. He emphasizes that the core challenges of building products remain just as difficult and demanding as they have always been.

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