105: Melissa Perri - Why "AI" is a terrible strategist

How to avoid “innovation theater,” spot latent customer needs, and build AI that solves real problems (not boardroom fantasies).

May 04, 2025

Melissa Perri drops truth bombs about why most companies fail at AI integration, how legacy giants self-sabotage innovation, and why "slapping AI on it" is the fastest way to irrelevance.

Timestamps & Key Moments

05:59 – AI: Innovation vs. Lipstick on a Pig
Why QuickBooks is losing to startups like Digits. Melissa’s rule: If AI doesn’t make the problem 10x easier, you’re just checking a box.

12:36 – Corporate Innovation’s Dirty Secret
Legacy companies fear self-disruption. Spin out autonomous teams with clear goals-not just “innovation theater” with beanbags and zero accountability.

20:19 – Boardroom Pressure & AI Hype
When investors demand AI, ask: Is this solving a real problem or chasing valuation multiples? Most boards care more about exit multiples than customer value.

24:33 – The “Latent Need” Blind Spot
Customers tolerate broken workflows (looking at you, QuickBooks). Spot problems people don’t even know they have.

29:55 – AI’s Mundane Superpower
Forget flashy chatbots-AI shines in automating daily struggles (e.g., Superhuman’s email shortcuts). If your team isn’t 10x faster, you’re doing it wrong.

44:10 – AI Ethics: When Algorithms Attack
Healthcare horror stories and why AI’s “brilliant insights” can backfire. Treat AI outputs as signals-not gospel-or risk ruining lives (and products).

Hot Takes

“AI Is a Terrible Strategist”
Slapping AI on your product without solving a core customer problem is like putting a rocket engine on a horse cart. It’ll move faster… straight into a dumpster fire.
“Legacy Companies Are Their Own Worst Enemies”
Corporate innovation fails because leaders prioritize protecting outdated revenue streams over killing them.
If your “innovation team” isn’t scared of disrupting you, they’re not trying.