Y Combinator Startup Podcast

AI Apps Are Broken — Here's How To Fix Them

Overview

Content

- Extremely powerful when using tools like Cursor and Windsurf to build software - Often frustrating when using AI features in existing applications

- Uses Google's Gemini model to generate email drafts - Pete demonstrates a draft email about his daughter being sick - The generated draft has two major problems: 1. The tone doesn't sound like Pete at all 2. The prompt to generate the draft is almost as long as the draft itself

- Developers are using traditional software development techniques - Not fully leveraging AI's potential capabilities - Current implementations often add more work for users instead of reducing it

- System prompts are hidden instructions that define an AI's behavior and context - In the Gmail example, the system prompt is not visible to users and likely includes instructions to: * Write emails in a formal, businesslike tone * Avoid embarrassing the parent company (Google) * Maintain a generic, safe communication style

- The speaker demonstrates how a personalized system prompt could create more authentic output - By editing the system prompt to reflect personal characteristics (age, role, communication style), the AI can generate more personalized responses - Example: A personalized prompt for "Pete" resulted in a much more concise, characteristic email draft

- Current AI app development follows traditional software design principles: * Developers create one-size-fits-all solutions * User interfaces abstract away underlying code/instructions * Aim to synthesize user needs into a generic, lowest common denominator product

- Initial implementations often merely replace existing systems without fully leveraging new capabilities - Examples include early internet search engines, first mobile apps - It typically takes years to develop truly transformative uses of new technologies

- The speaker demonstrates an AI agent for email management - The agent can: * Assign labels * Archive emails * Draft replies * Prioritize messages

- AI can be programmed through accessible, natural language instructions - Non-technical users can potentially create custom AI workflows - The process is intuitive: explaining decision-making processes to the AI - The AI is compared to a "fresh grad" - capable but needing guidance

- Coding agents are currently the most advanced AI models - AI models excel at processing instructions and converting them into code - Developer tools provide more direct, unrestricted access to AI model capabilities

- Current approach often involves limiting AI model power due to liability concerns - A shift is emerging towards giving users more control over AI tools - Comparison made to email platforms: user is responsible for their own output

- Most people currently cannot effectively write system prompts - Speaker predicts this will change rapidly, similar to computer literacy evolution - Prompting is seen as more accessible than traditional computer skills - Writing a prompt only requires ability to explain oneself in natural language

- Not everyone will want to write their own system prompts - Most users likely won't manually edit complex prompts - Potential future: AI auto-generates and customizes prompts based on user history and feedback

- Gradual training, similar to onboarding a new employee - Iterative process of interaction, feedback, and refinement - AI learns from previous context and user interactions

- AI system prompt writers that can self-edit - Automated prompt customization - Higher-level abstraction tools for prompt modification - 99% of users won't directly touch system prompts in 5 years

- YC team building internal tools with iterative AI prompt development - Sitting with team members to understand workflows - Collaborative prompt refinement process

- AI agents can be empowered by specific tools that enable them to perform tasks across different platforms - Example: An email reading agent with tools for labeling, archiving, and drafting emails - Potential to automate repetitive, transactional work across platforms like Slack, calendar, Notion, Jira, etc.

- Companies like Den are developing ways to chain tools for AI agents - AI can potentially automate complex workflows across multiple systems - The goal is moving beyond simple chatbot interactions to actual task accomplishment

- Current opportunity to redesign existing tools with an AI-native approach - Key question for developers: "How would I design this tool from scratch to offload repetitive work?" - AI should focus on automating mundane tasks, allowing humans to concentrate on high-value work

- AI is evolving from a Q&A interface to a system capable of accomplishing real-world tasks on behalf of users - Described metaphorically as a "rocket ship for the mind" compared to previous software paradigms

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