Setting Measurable Goals for AI Products
Milestone planning turns a measurable goal into a sequence of intermediate targets, and the right sequence depends on where the team starts.
The Gap Between a Goal and a Route
Once a team has defined measurable goals for an AI product, the next question is how to reach them. A goal such as handling a share of customer support tickets automatically tells the team where it wants to end up, but it does not say how to get there. Planning the route is the work that comes next.
This article follows one idea from start to finish: the route a team should take depends heavily on where it begins. Before reading on, hold a simple question in mind. If a product already does part of the job, how much of the job is actually left?
What Milestone Planning Is
Milestone planning turns a measurable goal into a sequence of intermediate targets, and the right sequence depends on where the team starts.
Milestone planning comes after goal-setting because a goal alone is too distant to act on directly. Intermediate targets break the distance into stages. Each stage is measured, so the team can see whether the product is moving toward the final target.
The plan is not written in the abstract. The starting point is usually a set of existing models whose abilities can be measured before any custom work begins. That measurement is what makes the plan concrete.
Starting From an Existing Model
Evaluating existing models reveals the baseline, meaning the level of performance a team gets before doing any custom work. The baseline is the first point on the route. A stronger baseline means less custom work is needed to reach the goal, and a weak baseline means more building.
The evaluation also makes the effort visible. It shows what the models can already do, so the team can see how far each intermediate target sits from the starting point. The diagram below shows how milestones sit between the baseline and the final measurable goal.
Worked Example: Support Ticket Automation
How much of the gap is left?
A team's goal is to have an AI system handle 60% of customer support tickets automatically. An off-the-shelf model they are evaluating can already handle 30% of them with no custom work. How much of the gap remains?
- 1Identify the goal
The measurable target is 60% of tickets handled automatically.
- 2Identify the baseline
The existing model already handles 30% of tickets with no custom work. This is the starting point the evaluation revealed.
- 3Compute the remaining gap
Subtract the baseline from the goal: 60% minus 30% leaves 30 percentage points of tickets still to be automated.
- 4Interpret the result
Half of the goal is already covered by the baseline, but the remaining half is the part that requires custom work and, as the next sections show, is often the hardest part.
30 percentage points of tickets still need automation, which is half of the 60% goal.
What do you think happens?
Before reading the answer, how many percentage points of tickets are still left to automate?
Reveal answer
30 percentage points, since 60% minus 30% equals 30%.
The baseline covers half of the goal, so the remaining distance is equal in size to the work already provided by the existing model.
Why an Early Demo Misleads
A very common belief goes like this: if a prototype already looks impressive after a short build, the product must be most of the way finished. The reasoning feels sensible. When effort is visible and results are visible, people tend to assume the remaining distance is proportional to what has already been done.
The source gives two reasons this pattern appears. First, foundation models already have impressive base capabilities, so a convincing demo can be built quickly. Second, that speed hides the work of refining behavior. The source names product kinks and hallucinations as areas that consumed a large share of the time. The early success is real, but it says little about how much refinement is still ahead.
Why Progress Slows Near the Target
Early success can mislead, because the last mile of quality often takes far longer than the first stretch of progress. The first improvements tend to come quickly, since the base model already does a lot. As the product approaches its final quality level, each further gain tends to require more work than the one before it.
Because of this, a team cannot judge remaining effort by looking at how fast it has moved so far. The pace of early progress is not a reliable guide to total effort. The most demanding stretch lies close to the target, which is exactly where a team is most tempted to believe it is nearly done.
Mistakes When Planning Milestones
Common mistake Treating a convincing demo as proof that the product is nearly finished
What it looks likeA prototype is built in a short time and looks impressive, so the team assumes most of the work is done.
Why it failsThe source notes that speed hides the work of refining behavior, and that the last mile of quality often takes far longer than the first stretch.
Do this insteadMeasure the product against the measurable goal, and plan for refinement work such as product kinks and hallucinations.
Common mistake Starting milestone planning without measuring existing models
What it looks likeA team writes a schedule of intermediate targets without knowing what an off-the-shelf model can already do.
Why it failsThe route depends on the starting point. Without a baseline, the size of the custom work is unknown.
Do this insteadEvaluate existing models first, so the baseline shapes the sequence of milestones.
Common mistake Assuming the goal is fixed for the whole project
Why it failsEvaluation can reveal that the work costs more than the value the product could return.
Do this insteadInclude a checkpoint where the team revisits whether the product is still worth pursuing.
Common mistake Assuming remaining effort is proportional to effort already spent
Check Your Plan
A team's goal is to have an AI system resolve 80% of incoming requests automatically. Its evaluation shows that an existing model already resolves 45% of requests with no custom work. Work out how many percentage points of requests remain to be automated. Then describe one milestone you would place between the baseline and the goal, and one checkpoint where you would reconsider the goal.
Hints
- Subtract the baseline from the goal to find the remaining gap.
- A useful intermediate target sits between 45% and 80%, and should be measurable.
- A checkpoint asks whether the work still justifies the value the product could return.
Summary of the Planning Route
- 1Milestone planning turns a measurable goal into a sequence of intermediate targets, and the right sequence depends on where the team starts.
- 2Evaluating existing models reveals the baseline. A stronger baseline means less custom work is needed to reach the goal.
- 3An early impressive demo can mislead a team, because foundation models make early results fast while refining behavior takes much longer.
- 4Progress often slows near the final quality level, so early pace is not a reliable guide to total effort.
- 5A good plan includes a checkpoint for reconsidering whether the goal and the product are still worth pursuing.
At a glance
- Milestone planning turns a measurable goal into intermediate targets, and the right sequence depends on where the team starts.
- Evaluating existing models reveals the baseline, and a stronger baseline means less custom work is needed.
- Early demos can mislead because the last stretch of quality often takes far longer than the first stretch of progress.
- A good plan includes a checkpoint for reconsidering whether the goal is still worth pursuing.