Using AI to validate new income streams before investment

When Hearing Dogs for Deaf People approached us in early 2025, they were facing a challenge familiar to many established charities. Their sponsor-a-puppy programme, once a reliable source of income, was experiencing declining engagement. Traditional donation models weren't resonating with supporters in the way they once had, leaving the charity searching for new revenue streams to fund their life-changing work.

Rather than rushing into product development that might generate revenue but compromise their mission focus, Hearing Dogs wanted to test a compelling hypothesis: that people were seeking deeper, more interactive relationships with charitable causes, and that AI might help create these connections at scale. The question wasn't whether technology could solve their problem, but whether their proposed solutions would actually work in practice.

Testing ideas before building them

We committed to a three-week sprint designed around rapid validation rather than perfect execution. Using our Innovation Intervals approach, we alternated between intensive building phases and deliberate reflection periods. The goal was to develop concepts that were functional enough to test with real users, but lightweight enough that we could pivot quickly based on what we learned.

This methodology proved crucial. Rather than asking stakeholders to imagine how something might work, we could show them fully functional experiences and gather genuine user feedback. The approach allowed us to test assumptions that would typically require months of development and significant upfront investment.

We developed three distinct concepts, each targeting a different aspect of how supporters might engage with Hearing Dogs' mission. The first, "Doing Good", was a monthly subscription service where the charity's expert trainers would curate premium dog toys and treats. Subscribers would receive carefully selected products alongside personal stories from dogs in training, training tips, and insights that only professional dog trainers could provide.

The value proposition felt compelling on paper. Dog owners would receive expertly vetted products while supporting the charity's mission. We built a complete automated product selection system that analysed thousands of wholesale items across multiple suppliers, optimising for cost-effectiveness, nutritional value, and training potential. The system could generate personalised selections based on dog size, age, and chewing preferences, while we created detailed financial models simulating everything from customer acquisition costs to churn rates.

The second concept, "Only Puppies", tapped into people's desire for authentic connection by allowing supporters to follow specific puppies through their training journey. Think of it as a more intimate, digital-first approach to traditional sponsorship. Users could select a puppy to follow, receive regular updates on their progress, and access exclusive content about their development into a working hearing dog.

Our third concept, "Training Puppies", monetised Hearing Dogs' expertise directly by offering online courses for specific breeds and training challenges. This would provide professional-grade training advice to everyday dog owners, creating a new revenue stream whilst showcasing the charity's deep knowledge.

The power of AI-first development

Throughout this process, AI wasn't simply a tool we occasionally reached for. It was fundamental to how we approached every aspect of the work. We used AI to analyse competitor pricing and customer reviews across the pet product and charity subscription landscape. We created sophisticated revenue projections and cost analyses for each concept. Most visibly, we generated thousands of product photos, training videos, and marketing materials that would have cost tens of thousands to produce traditionally.

This allowed us to create fully functional prototype websites complete with subscription management, personalised dog profiles, and expert pick explanations. The AI-generated visual content was convincingly realistic, enabling us to test user engagement without expensive photo shoots or video production. We could show potential users exactly what each service would look like in practice.

For the puppy tracking concept, we generated realistic puppy profiles, training milestone updates, and progress videos. The AI created consistent visual narratives for each dog, complete with believable training scenarios and personality development arcs. For the training courses, we created comprehensive course structures, training materials, and assessment tools, all branded with Hearing Dogs' expertise.

When "failure" becomes strategic success

After three weeks of intensive development and user testing, our conclusion was clear: none of the concepts were strong enough to justify full implementation. The subscription box faced fierce competition from established players with superior logistics and supplier relationships. The puppy tracking concept, whilst emotionally compelling, didn't solve the underlying engagement problem but simply digitised the existing sponsorship model. The training courses lacked the market differentiation needed to compete with established pet training platforms.

Most agencies would consider this outcome a failure - fewer billable hours, no ongoing product development contracts. We considered it a resounding success because we'd helped Hearing Dogs avoid compromising their mission for the sake of new revenue streams. By rapidly building and testing these concepts, we gave Hearing Dogs something invaluable: strategic clarity. Instead of spending months and potentially hundreds of thousands of pounds developing products that wouldn't succeed, the charity could focus their limited resources on initiatives with higher success probability.

The concepts had looked promising during initial discussions and planning. They addressed real user needs and leveraged the charity's genuine expertise. However, testing revealed fundamental market realities that would have been expensive to discover through traditional development processes. The subscription box market was saturated with well-funded competitors offering better logistics and pricing. The digital puppy tracking suffered from the same engagement challenges as traditional sponsorship, just with different technology. The training courses would have required significant ongoing content development and marketing investment to compete effectively.

Strategic clarity through elimination

This project highlighted several crucial insights for charities exploring new revenue streams. Market dynamics don't change simply because your mission is worthy. Even with compelling social impact stories, charities must compete on product-market fit, pricing, and user experience. Donor fatigue might be real, but donor expectation evolution is more significant. People aren't necessarily tired of supporting charities; they want different types of relationships and engagement.

The work also demonstrated how AI enables hypothesis testing at unprecedented speed and scale. What once required months of development can now be prototyped and tested in weeks. Perhaps most importantly, we proved that the most valuable outcome isn't always a successful product launch. Sometimes the greatest value comes from avoiding expensive mistakes through rapid, low-cost validation.

Hearing Dogs walked away from our engagement with clear strategic direction, validated market understanding, and confidence that their resource allocation decisions were based on real user feedback rather than internal assumptions. They could pursue other opportunities knowing they'd thoroughly explored and eliminated several possibilities that might otherwise have consumed significant resources.

For us, this project reinforced why we focus on applied AI for mission-driven organisations. When resources are limited and impact is paramount, the ability to rapidly test and validate concepts becomes essential. AI doesn't just help charities build better digital products; it helps them build the right ones. In a sector where every pound spent on unsuccessful initiatives is a pound that could have supported the core mission, this capability transforms how organisations can approach innovation and growth.