Building and leading effective AI teams is crucial for organizations to harness the power of generative AI and create mission-critical applications. The key to success lies in understanding the nature of an AI team, its unique composition, skill set, and role within the organization. A good team lead plays a critical role in managing the team and process, driving rapid iteration and user-centricity. The team's skill set includes universal skills such as communication with people from different departments and technical expertise levels, as well as specialized skills like use case orientation, iterative product development, LLM expertise, subject matter expertise, UI/UX design, full-stack AI development, and prioritizing skills over roles. Effective AI teams must prioritize developing products that set them apart from competitors, focusing on their core mission and avoiding distractions. They need tools that streamline repetitive tasks and allow collaboration with different levels of technical load. A comprehensive approach to AI development is essential, such as deepset Cloud, which offers a platform designed specifically for the AI team's unique requirements. By assessing talent gaps, investing in training programs, recruiting strategically, implementing collaborative tools, promoting continuous learning, and adapting to rapid AI advancements, organizations can build successful AI teams that create innovative products aligned with user needs and business goals.