5 min read

AI Guidance for Funnel Analysis

AI Guidance for Funnel Analysis

Datadog Product Analytics · Nov 2025 · 23 weeks

Context

Context

Context

Datadog Product Analytics is a behavioral analytics product that helps teams understand how users move through their product using events and charts. Funnels are one powerful and complex parts of this experience.

This project focused on introducing AI guidance to help product and design teams build, explore, and interpret funnels with more clarity and confidence, within a relatively new B2B SaaS product.

My Role: Product Designer
Team: 1 PM, 1 Product Designer, 2 Data Engineers, 1 Backend Engineer, 3 Frontend Engineers

Problem

Problem

Problem

Working with funnels still requires a high level of manual effort and product knowledge. Users need to understand events, structure, and context just to get started, which slows down analysis and reduces confidence in their decisions.

This creates a barrier to exploration: instead of focusing on insights, teams often spend significant time figuring out how to set up the right funnel.

The goal of this project was to use AI guidance to make exploration easier without taking control away from users. The idea was helping users start faster, explore with more confidence, and make better decisions within a complex workflow.

Approach

Approach

Approach

The project started with high ambiguity and no clear requirements, so I worked through informed assumptions, rapid explorations, and continuous alignment with product and engineering to shape an initial direction.

Rather than designing a fully defined AI feature upfront, I focused on creating a flexible foundation that could evolve with both the product and AI capabilities. I framed the experience around three key user moments: when users don’t know how to start, when they are analyzing an existing funnel, and when they want to add a new step but lack context.

Exploration began by reviewing AI interaction patterns across tools to understand mental models, followed by iterative prototyping in Figma within a key constraint: reusing Datadog’s existing Bits AI side panel.

A major focus of the exploration was defining when AI should appear, how suggestions should be applied (preview vs direct), and how to maintain reversibility and user control within analytical workflows.

Due to the fast timeline, validation relied on continuous design critiques, scenario walkthroughs, and cross-functional feedback. I also incorporated Figma AI and Cursor into my design process to accelerate exploration, prototype interaction behaviors, and refine guidance patterns within realistic workflows.

Some of the steps I took to get me there

Solution

Solution

Solution

The final solution introduced AI guidance as a layer embedded directly into the funnel workflow, rather than as a separate feature. The goal was to support exploration while preserving user control and existing expert workflows.

1. Giving users a strong starting point

To reduce friction at the empty state, users can begin with AI-suggested funnels or describe what they want using natural language.
This helps users get started faster without requiring deep knowledge of events or structure, while still allowing full manual creation for those who prefer it.

2. Guiding exploration without taking control

Once a funnel exists, users can ask questions and receive AI guidance that updates the chart directly.
All changes are visible, contextual, and fully reversible, ensuring users stay in control of their analysis and can explore safely within a complex workflow.

3. Supporting manual work with smart suggestions

AI guidance is embedded into the manual workflow rather than replacing it.
Suggested steps appear inside the step selector, allowing users to compare AI recommendations with all available options and make informed decisions instead of relying on automation alone.

Impact

Impact

Impact

Currently in internal release, with external metrics still being collected.

Impact is being evaluated through adoption (interaction with AI during creation and analysis), efficiency (time to complete funnels and reduction in abandoned setups), trust and usage (accepted vs. reverted AI-driven changes), and exploration (number of funnel variations or follow-up investigations per session).

This is a project snapshot

Contact me to know more. I’m happy to talk through the full process, constraints, and decisions behind the work.

contact@joanapedreira.com

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Read Case Study

© 2026 Joana Pedreira

contact@joanapedreira.com

© 2026 Joana Pedreira

contact@joanapedreira.com

© 2026 Joana Pedreira

contact@joanapedreira.com