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Product Management · Playbook · Advanced · ~5 min read
PRODUCT MANAGEMENT · PLAYBOOK · ADVANCED

Build the Failure-Mode Catalog and Degradation UX Annex

Your AI feature will hallucinate, refuse, go stale, get injected and time out — the only question is whether the product has a designed response or an accident. This playbook catalogs every failure mode with its user impact, detection signal and product response, and ships it as a PRD annex the whole team builds against.

Workflow area: Evals & AI Quality · Tier: Advanced · Hands-on time: ~40 minutes

Deterministic features fail into error states someone designed. AI features fail into outputs — fluent, confident, wrong — and if nobody designed the product's behavior for those moments, users get the raw failure at full strength. The failure-mode catalog is the document that turns "the model sometimes gets it wrong" from a disclaimer into engineering requirements: per mode, what the user experiences, how the system detects it, and exactly what the product does about it — fallback UX, escape hatches, human handoff. It is also, not incidentally, the document that answers the hardest AI-PM interview question: "what happens when your feature fails?"

When to use — and when not to

  • Use it for every user-facing AI feature before launchthe catalog and its degradation UX are launch blockers on par with the pricing page; pb-43's rollout plan and pb-52's incident response both build on it.
  • Use it as the companion to pb-34's requirements annexrequirements set the bars; the catalog specifies what happens below them.
  • Use it after each error-analysis round (pb-36)real traces reveal modes you didn't imagine and retire modes that never occur; the catalog versions alongside the taxonomy.
  • Skip the full ceremony for human-in-the-loop internal drafting toolswhere every output is reviewed before it matters, a short "known weaknesses" note may suffice.
  • Don't write it as an essaya catalog is a table with owners, not a risks paragraph; if a row doesn't change what engineering or design builds, it isn't finished.

The recipe

  1. Enumerate the modes — seeded, then brainstormed. Start from the standard five that apply to nearly every LLM feature — hallucination (confident fabrication), wrong refusal (declining benign requests), staleness (grounding on outdated knowledge), prompt injection (instructions smuggled through inputs), and latency/outage — then add your feature's specifics from pb-36's taxonomy and a structured brainstorm:

    For this AI feature, enumerate failure modes beyond the standard
    five (hallucination, wrong refusal, staleness, injection,
    latency/outage). Consider: retrieval failures, multi-turn context
    loss, harmful/off-brand tone, PII leakage in outputs, cost
    runaway, degradation under non-English input, and modes specific
    to this domain. For each: one-line description and a concrete
    example of what the user would see.
    
    Feature: [PASTE description, knowledge sources, user population,
    actions the feature can take]
    

    Curate the output — merge duplicates, cut the implausible, and keep only modes you can describe as something a user experiences.

  2. Fill the catalog row by row. The schema that makes it engineering-consumable:

    MODE: Stale-knowledge answer
    USER IMPACT: acts on outdated policy → failed request, S1
    FREQUENCY: 14% of failures (error analysis 2026-07)
    DETECTION: retrieval-doc age check; eval regression on
      stale-trap cases; complaint keyword monitor
    PRODUCT RESPONSE: answers cite source + last-updated date;
      retrieval filters superseded docs; if only stale docs match,
      say so and link the doc instead of answering
    EVAL COVERAGE: pb-37 cases #12-#16
    OWNER: retrieval — eng; citation UX — design
    

    The two columns teams skip are the two that matter: DETECTION (how will we know this is happening — a monitor, an eval, a complaint pattern; a mode with no detection signal is invisible in production) and OWNER (a row nobody owns is a wish).

  3. Design the degradation UX per mode — the annex's second half. For each mode, specify what the user actually sees, at wireframe-note fidelity: low-confidence states show sources and hedged copy rather than fluent certainty; empty-retrieval states say "I couldn't find this in our docs" with a search link — never freestyle; timeout states fail into the non-AI path with an apology, not a spinner; repeated-failure sessions proactively offer the human handoff. Every state needs an escape hatch — the user's route to accomplishing their goal without the AI. Design owns these screens; the annex is where they're commissioned.

  4. Run the adversarial pass on your own catalog. Fresh AI context: "Here is our failure-mode catalog. What failure modes are missing? Which detection signals would fail to fire in practice? Which product responses would make the user experience worse?" — the responses critique is the valuable one; over-eager fallbacks (hedging on every answer, handoff prompts after one hiccup) degrade the feature for the 90% of interactions that succeed.

  5. Ship it as a PRD annex and wire the dependencies. Attach the catalog to the PRD next to pb-34's requirements annex. Then make the connections explicit: every S1 mode has eval cases (pb-37) — add any missing ones now; detection signals become monitoring requirements (pb-41); response procedures feed the rollout plan's kill criteria (pb-43) and the incident-response classes (pb-52). A catalog that doesn't cross-reference these is a standalone document waiting to go stale.

  6. Review it live, quarterly. Each pb-36 error-analysis round updates frequencies, adds discovered modes and retires theoretical ones. The version history — "injection moved from theoretical to observed in v1.3" — is itself a quality narrative your team and your auditors will want.

Make it yours

  • Notion/Braintrust pairing: keep the catalog as a Notion database (one row per mode, linked to owners and PRDs) with detection columns linking to live Braintrust eval slices — the catalog stays a dashboard, not a PDF.
  • The retrofit audit: for an already-shipped feature, build the catalog from live support tickets and pb-36 traces, then gap-check: which observed modes have no designed response today? That gap list is a prioritized backlog.
  • The interview-prep variant: compress your catalog to one page — five modes, impact, detection, response — as a portfolio artifact; it demonstrates the exact judgment AI-PM loops screen for.

Quality check

  • The standard five are all addressedhallucination, wrong refusal, staleness, injection, latency/outage — each with a real row or an explicit argued N/A.
  • Every row has a detection signala monitor, eval slice or complaint pattern that would actually fire; "we'd notice" is not a signal.
  • Every row has an ownera named function for the fix and for the UX response.
  • Degradation states are designed, with escape hatcheseach mode maps to specified UI behavior and a non-AI path to the user's goal.
  • S1 modes have eval coveragecross-referenced to pb-37 case IDs, with gaps added before the annex ships.
  • Frequencies cite their sourceerror-analysis dates, not guesses; theoretical modes are labeled as such.
Warning

The catalog itself is sensitive — it is a map of exactly how to make your product fail, including injection vectors. Keep it in internal-only workspaces, exclude it from public docs and vendor shares, and treat the injection rows with the same handling as security findings.

Key Takeaway:

Users forgive an AI feature that fails gracefully and lose trust forever in one that fails confidently — the catalog is where you decide, mode by mode, that every failure lands on a designed surface with a detection signal, an owner and a way out.

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