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Building for Tenants, Not Tourists

Observe
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Mar 2025

In my previous posts, I broke down the "AI Checkbox Fallacy" and the "Seduction of the Sparkle." But I've been thinking about an even bigger problem that's bugging me lately: companies are building flashy AI features for tourists instead of improving their products for the tenants who actually pay the bills.

Tenants vs. Tourists

Look, there are two types of users for any product:

Tenants are the loyal users who:

  • Live in your product daily
  • Pay their rent (subscriptions) month after month
  • Need stability and reliability above all
  • Provide the sustainable revenue that keeps your lights on

AI Tourists are just passing through:

  • They show up because of some AI hype
  • Take a few screenshots, maybe create some buzz
  • Bounce as soon as the novelty wears off
  • Somehow still drive product decisions despite their transience

I keep seeing this everywhere - companies renovating their entire product for these tourists while ignoring what their actual tenants need. It's maddening.

The Scenery Story: Evicting Tenants for Tourists

I recently watched this play out with Scenery, a browser-based video editing platform. They built something genuinely useful that solved real problems for professionals:

  • Cloud-based collaboration on video projects
  • A canvas view for footage organization that was actually innovative

But then the AI hype train came through town in 2023, and they completely lost the plot. Suddenly they were all about courting AI tourists with flashy features to generate buzz and impress investors - not serving their core users who actually paid for the product.

We all know how this story ends. Adobe acquired the team and shut down the product entirely. All those professional users who built their workflows around Scenery? Evicted. The problems Scenery originally solved? Back to being unsolved.

All because they wanted to attract tourists instead of taking care of their tenants.

The Painful Reality

I'm seeing this pattern everywhere:

Webflow built its reputation on reliable, powerful web design tools. Now they're pouring resources into an AI Site Builder while their core product has growing performance issues. Their professional designer tenants (like me) who pay monthly subscriptions are watching in frustration as our needs get deprioritized.

Apple is throwing everything at Apple Intelligence while loyal users deal with persistent bugs in Photos, Finder, and basic iOS functionality. The foundation is cracking while they're building a fancy AI penthouse.

Why This Happens

I've been thinking a lot about why companies make these seemingly irrational decisions, and it basically comes down to three things:

  1. Investor pressure - Every funding meeting now requires an "AI strategy" slide
  2. Press and shiny object syndrome - AI features generate headlines; stability improvements don't
  3. The demo trap - AI features demo well in sales pitches and investor meetings, while core improvements are invisible

It's pretty straightforward, really. Companies are optimizing for what looks good in demos and press releases, not what creates actual value for tenants.

Companies Getting It Right

Not everyone is falling for this trap:

Notion has integrated AI in a way that enhances their core experience rather than distracting from it. Their AI writing assistant works within existing workflows, making tenants more productive without forcing them to learn new patterns or visit some separate "AI section" of the app.

Spotify enhances recommendations without compromising the core listening experience. Their AI works invisibly to improve what users already do. Even their newer AI DJ feature builds on the existing listening flow rather than fragmenting it.

Basecamp has taken a refreshingly different approach, focusing relentlessly on stability, performance, and core functionality. They're like the property manager who makes sure the foundation is solid, the roof doesn't leak, and the utilities work reliably before adding fancy amenities.

These companies get a fundamental truth: Your tenants - the ones who'll still be paying next year - care way more about reliability than flashy demos.

How to Fix This

If you're running a product company:

  1. Stop building separate "AI experiences." Integrate intelligence invisibly into existing workflows.
  2. Fix the foundation before adding AI penthouses. Performance, reliability, and core functionality come first.
  3. Listen to your tenants, not the tourists. The feedback from subscribers should outweigh hypothetical new users attracted by AI features.

And for users like me (and probably you):

  1. Vote with your wallet. Support products that maintain excellence in core functionality.
  2. Be vocal when companies neglect basics. Don't let them hide declining quality behind AI announcements.
  3. Recognize the tourist traps. Be skeptical when products suddenly pivot to flashy AI features.

Building for Tenants, Not Tourists

It's pretty simple. The most sustainable products are built for tenants, not tourists. They're designed for the people who actually live in them daily.

Think about it like real estate. A good property manager knows: you can fill your building with tourists who pay for one night and trash the place, or you can find reliable tenants who stay for years, take care of the property, and provide stable income.

Smart product teams fix the plumbing before adding a rooftop pool. They ensure the heating works before installing smart home gadgets. They maintain the foundation before adding a fancy lobby.

The companies that will win aren't those creating the flashiest AI demos for tourists. They're the ones using AI to make life better for their loyal tenants – often so subtly those tenants don't even notice.

Because while tourists might post about your product on X, it's the tenants who pay the rent. And if you neglect them long enough, they'll move out – no matter how many tourists come through for the weekend.

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written by Claude