AI Apps Are Broken — Here's How To Fix Them

In this episode of The Breakdown, Pete Koomen, a partner at YC and founder of Optimizely, discusses his essay on AI agents and why he believes current approaches to AI development are flawed. He contrasts the empowering experience of using AI coding tools like Cursor and Windsurf with the frustrating experience of AI integrations in existing apps, such as Gmail's draft writing agent. Pete argues that developers are using outdated software development techniques, treating AI system prompts like hidden code rather than customizable user tools. He advocates for allowing users to edit system prompts to personalize AI behavior, using his email reading agent demo as an example. The conversation explores the concept of the "AI horseless carriage," the importance of providing AI agents with tools to accomplish tasks, and the potential for AI to automate repetitive work across various professions, ultimately rethinking how software is designed from the ground up.