On February, Pi School hosted a captivating fireside chat between AI pioneer Alexander Waibel and the school’s Managing Director, Sébastien Bratières. The discussion centred on the crucial challenge of translating groundbreaking research into real-world business solutions. Waibel, drawing on his extensive experience founding 13 companies, shared invaluable lessons applicable to anyone seeking to build impactful businesses from innovative ideas. He emphasised that true success extends beyond technological prowess, focusing instead on how accessible and valuable the innovation is to end-users.
Waibel’s personal journey, born from a dissatisfaction with purely theoretical pursuits, led him to prioritise the practical application of research. As he put it, he “got so disgusted and bored” with the theory that he sought something more tangible: “It would be so much nicer if people would actually touch it and hold it in their hand and really do something that can answer some problems.” This desire to see technology in action became the driving force behind his entrepreneurial ventures, shaping his approach to business and guiding his focus toward understanding customer needs.
The importance of usability was a recurring theme throughout the conversation. Waibel vividly illustrated this with the story of JBI Go, the first speech translator for mobile phones. Initial user complaints revealed that people struggled with an essential function: recording sufficiently long audio clips. Rather than dismissing this as a user error, Waibel’s team saw it as an opportunity to improve the product. They adapted the system to be more intuitive, incorporating pop-ups and continuous recording. This example perfectly encapsulates Waibel’s core belief: if a user struggles with your product, the responsibility lies with the product design, not the user’s competence. “You don’t blame the customer,” he asserted, “you fix it in such a way that they can step over it, that they can make that mistake, right? They have to make somehow it self-explanatory and easy.” The most sophisticated technology, he argued, is rendered useless if it’s not easily accessible and understandable. “Imagine your grandmother had to use it,” Waibel suggested. “Would she want to use the stuff you’re building? And if the answer is no, you better ensure it’s better.”
Expanding on this focus on user-centric design, Waibel stressed the importance of making technology accessible even to those who might not be tech-savvy. He warned against assuming that all users are technical experts, emphasising the need to explain things clearly and avoid jargon. He also highlighted that real-world customer feedback can be a harsh but invaluable teacher. As one of his team members quipped, “Doing a company was really fun until we had customers!” This underscores the need to adapt quickly to meet specific needs and expectations.
Beyond the technical and financial aspects, Waibel emphasised the critical role of team dynamics in a start-up’s success. “Why companies fail,” he noted, “is that the founders start fighting with each other.” Creating a collaborative and supportive team environment is essential, and this starts with prioritising individuals who are not only intelligent but also genuinely pleasant to work with. He cited Sir Richard Branson’s colourful analogy: “It’s better to have a hole in your team than an a*****e in your team.” A toxic team member, Waibel explained, can poison the entire work environment, hindering productivity and stifling innovation. He emphasised that in a start-up, everyone wears multiple hats, making trust and camaraderie essential. “You better understand and love your peers,” he advised. When selecting team members, Waibel prioritises those with a “practical tilt” who are willing to roll up their sleeves and do the necessary work.
Transitioning from research to a viable business requires more than just technical expertise; it demands financial acumen and strategic decision-making. Waibel cautioned against the allure of excessive VC funding, suggesting that premature reliance on external investment can limit a company’s autonomy. He pointed out that bootstrapping, while challenging, allows for greater control and flexibility. Furthermore, Waibel stressed the importance of technical leadership, arguing that successful tech leaders possess both a deep understanding of technology and an intimate knowledge of customer needs. “You can’t just manage,” he asserted, “you need to do.” Citing Grace Hopper, he added, “You can’t manage people into battle. You have to lead them into battle. And modern technology is a battle, right? It’s very fast-moving.“
Before embarking on a new business venture, Waibel urged entrepreneurs to rigorously assess the market viability of their ideas. He recounted an early project focused on a sign translation system that converted Chinese road signs into English. Whilst the technology was impressive, the limited adoption of compatible devices meant there was virtually no market for the product. As he humorously recalled, “So the market was—probably—an intersection of zero or two people.” This experience served as a valuable lesson: even the most innovative technology is worthless without a real need and a potential customer base. Instead, Waibel pivoted to speech translation, a solution with much broader appeal, eventually leading to the creation of JBI and its subsequent acquisition by Facebook.
In the fast-paced world of AI, Waibel advocates for a strategy of rapid iteration and improvement rather than focusing solely on groundbreaking invention. “AI is commoditised—you rent it, buy it,” he explained. The competitive advantage lies in how effectively these components are integrated into real-world applications and how quickly products can be refined based on user feedback.
Looking back on his experience selling 13 companies, Waibel acknowledged the emotional challenge of letting go but emphasised the amplified impact that can result from joining a larger ecosystem. “One of the pleasures of selling a product,” he said, “is that it gives you much larger exposure.” He cited the integration of his speech translation technology into Zoom as a prime example, highlighting the satisfaction of enabling seamless communication for millions worldwide.
Alexander Waibel’s insights offer a practical roadmap for those seeking to transform innovative research into thriving businesses. By prioritising user-centric design, embracing financial discipline, fostering collaborative teams, and carefully assessing market viability, entrepreneurs can unlock the true potential of their ideas and create solutions that positively impact the world. As Waibel concluded, the ultimate measure of success lies not in the complexity of the algorithm but in the usefulness of the solution.