AI in Product Management: The New Way of Building Products

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Imagine a world where you can understand your customers and predict their needs before they even know they have them. That sounds like a dystopian future, but in actual reality, that's what artificial intelligence (AI) brings to companies and product managers.

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A recent report revealed that in 2021, artificial intelligence was the most popular discipline within the product management niche. AI influences product management, including the entire development process for new products. 

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One of the premier benefits of artificial intelligence in product management is streamlining efficiency through an optimized product development process.

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However, it is surprising that only 28% of all product managers believe they have an optimized product development process. The rest of the managers could miss out on many streamlined product processes, including data-driven decisions that clearly defined stages.

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In this article, we’ll look at how AI is shaping the product development process and the role of product managers in all this. 

Understanding Product Management and Product Managers

For your company to thrive in this volatile and somewhat unpredictable business environment, you need to have marketable and solution-driven products. And this is why you need product managers who develop strategies to innovate and develop these products. 

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Product managers greatly influence product innovation and can be considered ‘product CEOs’. They are heavily involved in the product life cycle, from development to market launch and the support thereafter. 

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This process is what business experts call product management. The strategies and tactics used to develop products that meet customer needs. 

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Although humans have been at the heart of this very process, the emergence of artificial intelligence in various industries has also influenced product management. 

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Understanding the Role of AI in Product Management

AI is shaping how products are conceputalized, developed, and mass produced. True to that, artificial intelligence was the most popular discipline that attracted major industries as recently as 2021. 

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Product management that utilizes AI benefits from leveraged data and smart technology. This enables product managers to make better decisions while understanding what customers want and how to create products that solve their needs.

How AI Leads The Way in the Building of New Products   

The product manager wears different hats. They act as the voice of the customer, championing the product vision and the bridge between different teams. 

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This juggling act comes with its fair share of challenges. For instance, one study found that about 39% of all product managers worry about missing launch dates, which typically occurs because of slow decision-making when it comes to choosing product features and functionalities. 

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AI simply fixes this by analyzing the market, including product feedback, to identify the most impactful features. It can also be monumental when fishing for potential roadblocks and areas of potential constraints.  

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But that’s not all it can do. Here's how AI has influenced the new way of building products:

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• AI Helps Product Managers Meet Customer Needs

Customer needs are underlying motivations or desires that drive people to buy products or services. If your product is not influencing your intended buyers to purchase it, then you need to hire elite product managers to tell you what you’re doing wrong. 

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But did you know that 21% of all products fail to meet customers’ needs? Although that sounds like a relatively insignificant figure, you’d be surprised to know that millions of opportunities in revenue could be lost as a result.

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Fortunately, AI can analyze vast amounts of data, including customer feedback (even unstructured information such as open-ended comments on social media), to identify common themes and frustrations. 

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AI allows product managers to understand their intended buyers better and tailor their products to resonate with what they want and need.

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• AI is a Powerful Personalization Tool 

Customers today prefer having customized experiences, including for purchases such as goods and services. 

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Part of customization also involves adding new features to a product. You'd be surprised at just how many product managers find it difficult to adapt to the market and add the necessary changes to their products. 

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One study showed that about 42% of all product managers find it challenging to add new features because of the customers' demand to support old features. 

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Fortunately, with AI, you can create custom experiences for each user. Think of it as a Netflix feed that ideally recommends your next show or an Amazon that tailors deals to your specific needs. That's the power of AI in action.

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Bottom Line

Product managers play a crucial role in the product development cycle. Their role feels almost irreplaceable because they serve as the voice of the customer, bringing those products and services ever so close to perfection in the eyes of the consumer. 

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But on the other hand, AI offers a clear path to efficiency. It can streamline a ton of processes while leveraging data for smarter decision-making. This includes analyzing market trends and user feedback to pinpoint the most impactful features, just to mention a few.

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AI can analyze vast amounts of data, including unstructured social media comments, to identify customer pain points and desires. This empowers product managers to craft solutions that resonate with what users truly want.

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