normally begins the identical means. In a management assembly, somebody says: “Let’s use AI!” Heads nod, enthusiasm builds, and earlier than you recognize it, the room lands on the default conclusion: “Positive — we’ll construct a chatbot.” That intuition is comprehensible. Giant language fashions are highly effective, ubiquitous, and engaging. They promise intuitive entry to common information and performance.
The crew walks away and begins constructing. Quickly, demo time comes round. A refined chat interface seems, accompanied by assured arguments about why this time, it will likely be totally different. At that time, nonetheless, it normally hasn’t reached actual customers in actual conditions, and analysis is biased and optimistic. Somebody within the viewers inevitably comes up with a customized query, irritating the bot. The builders promise to repair “it”, however usually, the underlying challenge is systemic.
As soon as the chatbot hits the bottom, preliminary optimism is commonly matched by consumer frustration. Right here, issues get a bit private as a result of over the previous weeks, I used to be compelled to spend a while speaking to totally different chatbots. I are likely to delay interactions with service suppliers till the scenario turns into unsustainable, and a few these instances had piled up. Smiling chatbot widgets grew to become my final hope earlier than an everlasting hotline name, however:
- After logging in to my automotive insurer’s website, I requested to clarify an unannounced worth improve, solely to appreciate the chatbot had no entry to my pricing knowledge. All it might supply was the hotline quantity. Ouch.
- After a flight was canceled on the final minute, I requested the airline’s chatbot for the explanation. It politely apologized that, for the reason that departure time was already previously, it couldn’t assist me. It was open to debate all different matters, although.
- On a telco website, I requested why my cellular plan had abruptly expired. The chatbot confidently replied that it couldn’t touch upon contractual issues and referred me to the FAQs. As anticipated, these had been lengthy however irrelevant.
These interactions didn’t convey me nearer to an answer and left me on the reverse finish of pleasure. The chatbots felt like overseas our bodies. Sitting there, they consumed actual property, latency, and a focus, however didn’t add worth.
Let’s skip the controversy on whether or not these are intentional darkish patterns. The very fact is, legacy programs because the above carry a heavy burden of entropy. They arrive with tons of distinctive knowledge, information, and context. The second you attempt to combine them with a general-purpose LLM, you make two worlds conflict. The mannequin must ingest the context of your product so it could motive meaningfully about your area. Correct context engineering requires ability and time for relentless analysis and iteration. And earlier than you even get to that time, your knowledge must be prepared, however in most organizations, knowledge is noisy, fragmented, or simply lacking.
On this put up, I’ll recap insights from my guide The Artwork of AI Product Growth and my current discuss on the Google Net AI Summit and share a extra natural, incremental method to integrating AI into present merchandise.
Utilizing smaller fashions for low-risk, incremental AI integration
“When implementing AI, I see extra organizations fail by beginning too massive than beginning too small.” ( Andrew Ng).
AI integration wants time:
- Your technical crew wants to arrange the information and be taught the obtainable strategies and instruments.
- You have to prototype and iterate to search out the candy spots of AI worth in your product and market.
- Customers have to calibrate their belief when transferring to new probabilistic experiences.
To adapt to those studying curves, you shouldn’t rush to show AI — particularly open-ended chat performance — to your customers. AI introduces uncertainty and errors into the expertise, which most individuals don’t like.
One efficient method to tempo your AI journey within the brownfield context is through the use of small language fashions (SLMs), which generally vary from a couple of hundred million to some billion parameters. They’ll combine flexibly together with your product’s present knowledge and infrastructure, slightly than including extra technological overhead.
How SLMs are skilled
Most SLMs are derived from bigger fashions via information distillation. On this setup, a big mannequin acts because the instructor and a smaller one as the scholar. For instance, Google’s Gemini served because the instructor for Gemma 2 and Gemma 3 , whereas Meta’s Llama Behemoth skilled its herd of smaller Llama 4 fashions. Simply as a human instructor condenses years of examine into clear explanations and structured classes, the massive mannequin distills its huge parameter house right into a smaller, denser illustration that the scholar can take up. The result’s a compact mannequin that retains a lot of the instructor’s competence however operates with far fewer parameters and dramatically decrease computational value.
Utilizing SLMs
One of many key benefits of SLMs is their deployment flexibility. In contrast to LLMs which might be largely used via exterior APIs, smaller fashions could be run domestically, both in your group’s infrastructure or immediately on the consumer’s gadget:
- Native deployment: You may host SLMs by yourself servers or inside your cloud setting, retaining full management over knowledge, latency, and compliance. This setup is good for enterprise purposes the place delicate data or regulatory constraints make third-party APIs impractical.
📈 Native deployment additionally affords you versatile fine-tuning alternatives as you gather extra knowledge and wish to answer rising consumer expectations.
- On-device deployment through the browser: Trendy browsers have built-in AI capabilities which you could depend on. For example, Chrome integrates Gemini Nano through the built-in AI APIs, whereas Microsoft Edge consists of Phi-4 (see Immediate API documentation). Operating fashions immediately within the browser allows low-latency, privacy-preserving use instances akin to good textual content recommendations, type autofill, or contextual assist.
If you want to be taught extra in regards to the technicalities of SLMs, listed here are a few helpful sources:
Let’s now transfer on and see what you may construct with SLMs to supply consumer worth and make regular progress in your AI integration.
Product alternatives for SLMs
SLMs shine in targeted, well-defined duties the place the context and knowledge are already recognized — the sorts of use instances that dwell deep inside present merchandise. You may consider them as specialised, embedded intelligence slightly than general-purpose assistants. Let’s stroll via the principle buckets of alternative they unlock within the brownfield, as illustrated within the following alternative tree.

1. Higher product analytics
Earlier than exposing AI options to customers, search for methods to enhance your product from the within. Most merchandise already generate a steady stream of unstructured textual content — assist chats, assist requests, in-app suggestions. SLMs can analyze this knowledge in actual time and floor insights that inform each product choices and fast consumer expertise. Listed here are some examples:
- Tag and route assist chats as they occur, directing technical points to the best groups.
- Flag churn alerts throughout a session, prompting well timed interventions.
- Counsel related content material or actions based mostly on the consumer’s present context.
- Detect repeated friction factors whereas the consumer continues to be within the movement, not weeks later in a retrospective.
These inner enablers hold danger low whereas including worth and giving your crew time to be taught. They strengthen your knowledge basis and put together you for extra seen, user-facing AI options down the street.
2. Take away friction
Subsequent, take a step again and audit UX debt that’s already there. Within the brownfield, most merchandise aren’t precisely a designer’s dream. They had been designed beneath the technical and architectural constraints of their time. With AI, we now have a chance to raise a few of these constraints, decreasing friction and creating quicker, extra intuitive experiences.
An excellent instance is the good filters on search-based web sites like Reserving.com. Historically, these pages use lengthy lists of checkboxes and classes that attempt to cowl each doable consumer choice. They’re cumbersome to design and use, and ultimately, many customers can’t discover the setting that issues to them.
Language-based filtering adjustments this. As a substitute of navigating a posh taxonomy, customers merely sort what they need (for instance “pet-friendly motels close to the seashore”), and the mannequin interprets it right into a structured question behind the scenes.

Extra broadly, search for areas in your product the place customers want to use your inner logic — your classes, constructions, or terminology — and substitute that with pure language interplay. Every time customers can specific intent immediately, you take away a layer of cognitive friction and make the product smarter and friendlier.
3. Increase
Together with your consumer expertise decluttered, it’s time to consider augmentation — including small, helpful AI capabilities to your product. As a substitute of reinventing the core expertise, take a look at what customers are already doing round your product — the aspect duties, workarounds, or exterior instruments they depend on to achieve their aim. Can targeted AI fashions assist them do it quicker or smarter?
For instance, a journey app might combine a contextual journey observe generator that summarizes itinerary particulars or drafts messages for co-travelers. A productiveness instrument might embrace a gathering recap generator that summarizes discussions or motion objects from textual content notes, with out sending knowledge to the cloud.
These options develop organically from actual consumer conduct and prolong your product’s context as an alternative of redefining it.
4. Personalize
Profitable personalization is the holy grail of AI. It flips the normal dynamic: as an alternative of asking customers to be taught and adapt to your product, your product now adapts to them like a well-fitting glove.
Once you begin, hold ambition at bay — you don’t want a completely adaptive assistant. Reasonably, introduce small, low-risk changes in what customers see, how data is phrased, or which choices seem first. On the content material degree, AI can adapt tone and elegance, like utilizing concise wording for consultants and extra explanatory phrasing for newcomers. On the expertise degree, it could create adaptive interfaces. For example, a project-management instrument might floor probably the most related actions (“create process,” “share replace,” “generate abstract”) based mostly on the consumer’s previous workflows.
⚠️ When personalization goes improper, it rapidly erodes belief. Customers sense that they’ve traded private knowledge for an expertise that doesn’t really feel higher. Thus, introduce personalization solely as soon as your knowledge is able to assist it.
Why “small” wins over time
Every profitable AI characteristic — be it an analytics enchancment, a frictionless UX touchpoint, or a personalised step in a bigger movement — strengthens your knowledge basis and builds your crew’s iteration muscle and AI literacy. It additionally lays the groundwork for bigger, extra complicated purposes later. When your “small” options work reliably, they grow to be reusable parts in larger workflows or modular agent programs (cf. Nvidia’s paper Small Language Fashions are the Way forward for Agentic AI).
To summarize:
✅ Begin small — favor gradual enchancment over disruption.
✅ Experiment quick — smaller fashions imply decrease value and quicker suggestions loops.
✅ Be cautious — begin internally; introduce user-facing AI when you’ve validated it.
✅ Construct your iteration muscle — regular, compound progress beats headline tasks.
Initially printed at https://jannalipenkova.substack.com.
