Notion CEO Ivan Zhao: Demand Better Tools, Embrace AI
Notion CEO Ivan Zhao envisions a future where software tools, far from being static applications, act as dynamic, intelligent teammates. His company, Notion, an all-in-one productivity suite used for everything from note-taking to complex project management, is at the forefront of this transformation. Zhao describes Notion as “LEGO for software,” a metaphor that encapsulates his enduring design philosophy and the company’s journey from a nascent idea to a major player in the productivity space.
Notion’s core strength lies in its customizable “blocks,” allowing users to build diverse workflows, from simple lists to sophisticated databases. This approach stands in stark contrast to the prevalent “hard plastic solutions” of modern Software-as-a-Service (SaaS), which Zhao likens to single-purpose kitchen gadgets like an avocado cutter, rather than versatile tools like a kitchen knife. This fragmentation, where the average company juggles over a hundred different SaaS tools, is precisely what Notion aims to counter by bundling essential functionalities into a cohesive, adaptable platform.
Zhao’s vision for Notion is rooted in the early computing pioneers of the 1960s and 70s, who saw computers as malleable mediums for thought and collaboration. He believes that the subsequent “application format” era, characterized by rigid, unchangeable software, has created “mini-prisons of computing.” Notion, therefore, seeks to return to that earlier ideal, empowering users to tinker and create their own software solutions. This dedication to flexible design led to a pivotal moment in 2015 when, facing financial constraints and realizing they were building on the wrong foundation, Zhao and co-founder Simon Last rebooted the company, relocating to Kyoto, Japan. This period allowed them to focus intensely on rebuilding Notion 2.0, drawing inspiration from Kyoto’s craft tradition—a dedication to building with care and purpose beyond mere profit.
The arrival of advanced artificial intelligence, particularly OpenAI’s GPT-4, marked another significant turning point for Notion. Zhao and Last gained early access to GPT-4 in late 2022 and quickly realized its transformative potential, launching an OpenAI-powered AI product even before ChatGPT’s public debut. Notion now brands itself as an “AI workspace that works for you,” integrating AI capabilities directly into its platform. Zhao himself leverages AI for personal learning, demonstrating a deep enthusiasm for its possibilities, especially the concept of AI agents that can increasingly automate tasks within applications.
Despite the rapid advancements in AI, a gap remains between current capabilities and future aspirations. Zhao acknowledges the challenge of reliability, comparing AI models to interns who possess vast knowledge but may not be consistently accurate. However, he sees this as a temporary phase, anticipating that future products will bake in “memory and learning” to enhance reliability. Notion’s strategy involves teaching AI how to use its “LEGO blocks,” allowing users to essentially “hire Notion as their AI teammate.” This vision suggests a future where small teams, augmented by AI, can operate with the efficiency of much larger organizations, amplifying human creativity rather than replacing it.
Notion’s business model reflects this strategic shift. The company, which was valued at $10 billion nearly four years ago during its last funding round, is now profitable and growing rapidly. Initially an add-on, Notion’s AI features have become so integral that they are now merged into the main subscription plans. While this impacts margins compared to pure SaaS, the power and user appreciation of AI justify the investment, keeping the company cash flow positive.
Zhao distinguishes Notion’s B2B (business-to-business) AI approach from the more personal, B2C (business-to-consumer) focus of many AI labs. He argues that while consumer AI might see a few dominant winners, the B2B landscape will foster many specialized solutions tailored for diverse professional needs, from legal to accounting to programming. This specialization necessitates a different development philosophy—one that embraces ambiguity and iterative experimentation, akin to “brewing beer” rather than building predictable “train tracks.” This translates into a company culture that values adaptability and cross-functional talent, with designers who can code and teams that are comfortable with constant change.
Looking ahead, Zhao envisions Notion evolving from a mere toolset into an “organic matter” that actively helps users with repetitive knowledge work. In the next couple of years, he anticipates the ability to create different “flavors of AI interns” or specialized AI teammates within a user’s workspace, further cementing Notion’s role as a force multiplier for productivity. The goal remains to empower a new generation of builders and businesses to operate with unprecedented efficiency and creativity, fundamentally reshaping the future of knowledge work.