No matter how bold their pitches sound, most AI startups face the same big question that’s challenged founders for decades: How do you know when you’ve truly nailed product–market fit?
Product–market fit isn’t a new concept—it’s been analyzed, written about, and debated endlessly. But here’s the twist: AI is changing the rules of the game.
“Honestly, it just couldn’t be more different from all the playbooks we’ve learned in tech before,” said Ann Bordetsky, a partner at New Enterprise Associates, speaking to a packed crowd at TechCrunch Disrupt in San Francisco. “It’s a completely different ball game.”
One major reason? The breakneck pace of change in AI. “The technology itself isn’t static,” Bordetsky explained. What works today could feel outdated in just a few months.
Even so, there are still ways founders can gauge whether their product is truly resonating with the market.
Murali Joshi, a partner at Iconiq, says one of the strongest indicators is what he calls the “durability of spend.” In many companies, AI budgets are still experimental—money set aside to “try things out.” But when that spending starts coming from core business budgets, like those managed by top executives, that’s when you know your product is sticking around.
“Increasingly, we’re seeing companies move away from experimental AI budgets to core CXO budgets,” Joshi said. “That shift is critical. It shows your product isn’t just a fun experiment—it’s becoming essential.”
Joshi also recommends keeping an eye on classic engagement metrics: daily, weekly, and monthly active users. “How often are your customers using the product they’re paying for?” he asked. Those numbers can tell a powerful story.
Bordetsky added that data alone doesn’t give the full picture. Talking directly to customers—especially early on—can uncover insights numbers might miss. “If you talk to customers or users, even through simple interviews, their enthusiasm and pain points come through very clearly,” she said.
Joshi suggested going a step further by interviewing people in the executive suite. Ask them, “Where does this product fit in your tech stack?” The goal, he said, is to make your product so embedded in their workflow that it becomes irreplaceable.
Finally, Bordetsky reminded founders that product–market fit isn’t a finish line—it’s a journey. “It’s not just one point in time,” she said. “You might start with a small degree of product–market fit in your niche, but the real challenge is to keep strengthening it over time.”
