prototype
What It Means
A prototype is a working model or early version of a product that demonstrates its key features and functionality before full-scale production. It's built to test whether the concept actually works in practice and to identify problems that need fixing. Think of it as a 'proof of concept' that you can actually touch, use, and evaluate.
Why Chief AI Officers Care
Prototypes are critical for AI projects because they help validate whether an AI solution will actually solve the business problem before investing millions in full development. They allow CAIOs to demonstrate value to stakeholders, identify technical risks early, and gather user feedback that can prevent costly mistakes. Prototypes also help secure funding and buy-in by showing tangible results rather than just theoretical possibilities.
Real-World Example
A retail company wants to use AI for personalized product recommendations. Instead of building a full system, they create a prototype that works with just 1,000 products and 100 customers, running for two weeks. This prototype shows whether the recommendation engine actually increases sales, how customers respond to the suggestions, and what technical challenges emerge, all before committing to a full-scale rollout across millions of products.
Common Confusion
People often confuse prototypes with mockups or wireframes, which are just visual representations without working functionality. A true prototype actually performs the core functions and can be tested with real data and users, not just viewed or clicked through.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, prototypes are early versions of medical devices, digital health solutions, or clinical workflows that mu...
Finance: In finance, a prototype typically refers to an early version of a fintech product, trading algorithm, or digital banking...
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- 6 industry-specific applications
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Technical Definitions
NISTNational Institute of Standards and Technology
"A prototype is an original model constructed to include all the technical characteristics and performances of the new product."Source: OECD
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