Building Your Next-Level AI-Powered Product Strategy

Building Your Next-Level AI-Powered Product Strategy

Apr 4, 2025(Updated: Apr 17, 2025)

Understand how modern AI (like ChatGPT) goes beyond chat using 'Context' and 'Function Calls' to interact with tools and data. Learn how to leverage these AI capabilities to build smarter, automated, next-gen products. Essential insights for PMs and executives.

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TLDR;

  • Modern AI (LLMs) like ChatGPT understands Context: request, files, tools, chat history.
  • It uses Function Calls for structured data / triggering actions.
  • Evolved from basic chat to using specific info (Resources) & Tools via APIs.
  • Strategy: Use structured data & actions for next-gen products.

You know AI is changing the game, but how can you actually use Large Language Models (LLMs) like ChatGPT to make your products better? Let's skip the tech-speak and look at the simple building blocks you need to understand to build smarter products.

What Makes Today's AI Tick?

Modern AI isn't just guessing. It uses Context and can trigger actions via Function Calls.

Diagram showing LLM Context and Function Calls

Giving the AI the Right Info (Context)

Needs context: What you ask & provide.

  • Prompt: Your direct request.
  • Resources: Extra docs/files.
  • Tools: APIs, search etc.
  • History: Past conversation.

Making the AI Do More Than Talk (Function Calls)

A superpower! Before replying, AI can:

  • Get Organized Data: Outputs neat data like { "city": "NYC" } for other apps.
  • Tell Other Apps What to Do: Triggers actions via APIs. E.g., "Book flight" {...} actually books it.

How AI Got These Smarts (Quick History)

It didn't happen overnight. Abilities grew step-by-step.

Diagram showing LLM evolution

From Chatting to Connecting

  • ChatGPT: Basic human-like chat.
  • Custom Models (Context++): Used company info (Resources).
  • Adding Skills (Tools): AI did jobs ("Tasks"), needing Tools.
  • Connections (API) (Actions!): Enabled reliable Tools & Function Calls.

Strategic Takeaway: Full Power of AI

Plan beyond chat. Use AI's full capabilities:

  • Go Beyond Chat: Not just Q&A.
  • Use Structured Data: Output clean data for systems.
  • Enable Action: Trigger bookings, updates etc.

Integrate context, data & actions for automated, engaging, future-ready experiences.

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