Service Design

AI projects often fail when they overlook user experience. Learn how applying Service Design principles can create intuitive, valuable AI agents and workflows that users genuinely benefit from.

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April 6, 2025
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8 min
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Why This Matters  

Many AI projects fail not because of technology limitations, but due to poorly designed interactions That come from over engineered technical solutions.

Proposing new workflows and processes within highly technical engineering teams can be challenging. Time-and-time again I’ve seen too many input parameters and deep technical explanations used to explain what should be a straightforward solution.

If we continue with engineer-led designs, as we move to augmenting our engineers with co-pilots and AI Agents, I fear it will lead to even worse designs.

The problemIn these cases?

The engineers prioritized technical implementation over user experience.

Service Design helps prevent this by aligning AI capabilities closely with real user needs from the start.

The Core Idea or Framework

Service Design is a holistic methodology focused on creating services that provide meaningful experiences and outcomes for users.

When applied to AI, it ensures technology meets user needs effectively.

Imagine Service Design as choreographing a seamless performance: each user interaction with the AI agent is intentionally designed to feel intuitive, relevant, and valuable.

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Breaking It Down – The Playbook in Action

Step 1: Empathize and Research

  • Conduct qualitative interviews and observations to deeply understand user contexts and needs.
  • Tools: User Interviews, Ethnographic studies of individual workflows

Step 2: Define the User-Centric Problem

  • Create user personas and clearly defined problem statements to guide AI development.
  • Framework: Empathy Mapping, Journey Mapping and Service Design Blueprint (using Mural)

Step 3: Ideate Solutions

  • Engage stakeholders in brainstorming sessions to explore possible AI interactions.
  • Techniques: Design Thinking workshops, Crazy 8’s ideation method

Step 4: Prototype AI Interactions

  • Rapidly prototype conversational flows and interaction models.
  • Tools: Voiceflow, Cohere & Bubble

Step 5: User Testing and Feedback

  • Test prototypes directly with users to validate assumptions and refine the AI’s performance.
  • Methods: Usability tests, A/B testing, qualitative feedback loops

Step 6: Deploy and Continuously Monitor

  • Launch the refined AI agent, implement analytics, and iteratively improve based on user interactions.
  • Tools: Langgraph,LangSmith, Mixpanel, continuous feedback mechanisms

“The most powerful AI systems aren't just technically advanced; they're thoughtfully designed around real human needs.”

Tools, Workflows, and Technical Implementation

Here's a detailed technical stack to apply Service Design effectively in AI workflows:

User Research:

  • User Interviews
  • Zoom + Otter AI

Experience and Journey Mapping:

  • Mural
  • Obsidian Canvas
  • Whimsical

AI Prototyping and Conversational UX:

  • Voiceflow
  • Rasa (for advanced prototyping)
  • N8N

Implementation and Analytics:

  • Docker (containerization)
  • Kubernetes (orchestration)
  • Hugging Face or NVIDIA Triton Inference Server (model serving)
  • Amplitude, Mixpanel (analytics and user monitoring)

Real-World Applications and Impact

NatWest’s collaboration with OpenAI

In March 2025, NatWest became the first UK bank to partner with OpenAI to improve their digital assistants and customer support processes.

This initiative aimed to enhance customer experience, reduce costs, and combat financial fraud.

By integrating OpenAI’s technology, NatWest improved their customer-facing chatbot, Cora, leading to a 150% improvement in customer satisfaction levels and a reduction in the need for human advisers.

This strategic move reflects NatWest’s commitment to digital innovation, as approximately 80% of their retail customers bank entirely digitally.

Challenges and Nuances – What to Watch Out For

One common pitfall is assuming initial user requirements remain static. In reality, user expectations evolve. Continuously revisiting user research and conducting iterative testing is crucial. Additionally, organizations often underestimate the time and resources needed for thorough prototyping and testing.

Allocating sufficient resources early ensures long-term success.

Closing Thoughts and How to Take Action

Integrating Service Design into your AI workflows dramatically improves user experience and business outcomes.

To begin, select one workflow or AI agent and apply this framework—start small, iterate often, and focus deeply on user feedback.

The key is to find the one business use case that can justify the use of AI agents on its own. Do not get caught up on what would be possible only design for what brings value today.

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