AI Product Manager: Everything You Need to Know To Become One

No longer does the term ‘Product Manager’ describe a single role. Today, a PM can splinter and fragment into different types, such as niches like Growth Product Managers or Technical PM. But recently, due to severe growth in this industry, a new specialization is stepping into the spotlight: the AI Product Manager.

This emerging role is a direct result of artificial intelligence becoming an essential part of the product landscape, propelled by breakthroughs in technologies like Large Language Models (LLM) and Machine Learning (ML).

AI-driven features, once a novelty, are now at the core of mainstream products. While AI was once a buzzword, it’s now a vital ingredient in everything from everyday tools to complex systems.

But here’s the thing: managing AI-powered features isn’t quite the same as managing traditional ones. This calls for the need for a focused AI Product Manager. But is this role all that different from your regular PM gig? The answer: absolutely. 

That’s why AI Product Management is quickly becoming a must-have skillset for any savvy PM.

Here’s the lowdown on AI Product Management – what it is, why it’s crucial, and how you can start building expertise in AI Product Management. 

What is AI Product Management?

AI Product Management is the practice of managing the product lifecycle of AI-powered software, focusing on the integration of artificial intelligence to solve real-world problems and deliver value to users. It’s about balancing technical innovation with user experience, making sure that AI isn’t just a shiny new toy but a practical, effective solution that aligns with customer needs.

AI Product Management requires a deep understanding of the underlying AI technologies – things like machine learning, and natural language processing – so that you can translate these into tangible product features. It’s not just about applying AI for the sake of it, but knowing how to use it to enhance product functionality, drive business goals, and maintain ethical standards.

An AI PM also needs to be a master of managing uncertainty. Unlike traditional products, AI systems can behave unpredictably, generating results that vary with each use. This makes it essential to create AI solutions that are both innovative and reliable, ensuring that users have confidence in the product. Whether it’s constraining AI outputs or reducing “hallucinations” (those occasional moments when the AI gets things wildly wrong), an AI Product Manager has to stay ahead of the curve to ensure the product is a hit.

In essence, AI Product Management is about building products that understand and respond to customer problems while embracing the power – and the complexities – of AI.

What is an AI Product Manager?

An AI Product Manager is a PM who understands AI technologies and applies this knowledge to create AI-powered products that address real customer problems, all without falling into the trap of making AI seem like a gimmick. 

They don’t just implement AI for the sake of it; they make sure that AI enhances the product’s value proposition, aligns with user needs, and is integrated in a meaningful way.

While there are plenty of similarities between the responsibilities of an AI Product Manager and a core PM, AI Product Managers face additional unique challenges. Here’s a breakdown of the things an AI PM does that a core PM may not:

• Understand AI technology: AI PMs must be familiar with the technical concepts and limitations of AI, including machine learning, neural networks, and natural language processing. They need to be able to translate these complex ideas into product strategies that work for both customers and developers.
• Manage Non-deterministic behavior: Unlike traditional, deterministic technologies (like calculators, where the same input always produces the same output), AI technologies can behave unpredictably. AI PMs must anticipate and manage the variability in AI responses, ensuring consistency without compromising on the technology’s capability.
• Constrain AI outputs: Given AI’s unpredictable nature, AI PMs must work to “constrain” the AI within their product to improve model accuracy and produce useful, relevant, and actionable results – while preventing the AI from going off the rails (think AI “hallucinations,” or instances where it makes things up).
• Prototype and test prompts: AI PMs must be comfortable with prompt engineering, which is creating, testing, and refining AI inputs to improve model outputs. This could mean working with AI experts or doing it themselves, depending on the stage of the product.
• Manage ethical AI use: Beyond the typical ethical challenges faced by PMs (like user data privacy), AI PMs must ensure that AI systems are used responsibly. This includes preventing bias in models, ensuring transparency, and protecting users from the unintended consequences of AI technology.

Is an AI Product Manager different from a core Product Manager? 

Yes, but the gap is closing. As AI becomes more deeply embedded into all sorts of products, the line between the AI PM role and the core PM role is blurring. In fact, the expectation is that all PMs will soon need AI skills, whether it’s managing standalone AI features or simply enhancing a product with AI-powered capabilities.

The ability to work with and improve AI-powered products are in-demand skills. Soon, it won’t be about hiring an AI Product Manager – it will be about having AI skills as a core competency for any PM. Understanding prompt engineering, for example, will become as essential as knowing user flows and prioritization models. As AI continues to infiltrate tools across industries, every PM will need to be capable of managing AI-based features as part of their broader product portfolio.

Why is AI Product Management important?

AI Product Management isn’t just about adding AI to products – it’s about navigating the unique challenges and opportunities that come with building AI-driven solutions. Companies aren’t just looking for a standard Product Manager; they need someone who understands the nuances of AI, from data dependencies to ethical considerations, to make these products successful. Here’s why this role is in high demand:

AI products are fundamentally different

Traditional software follows rules written by humans, while AI products learn, adapt, and make decisions based on data. This shift requires a different approach to product strategy, one that considers:

• Data as the foundation – AI products rely on high-quality, unbiased, and well-labeled data. AI PMs must ensure access to the right data sources and define how data is collected, processed, and used.
• Probabilistic outcomes – Unlike traditional software with predictable outputs, AI systems produce probabilistic results, meaning they can fail or deliver unexpected outcomes. AI PMs need to manage these risks and set appropriate user expectations.
• Continuous learning and adaptation – AI models evolve over time, which means the product experience isn’t static. AI PMs must oversee model updates, retraining, and product performance monitoring to maintain product quality.

They bridge the gap between AI research and business needs

Many AI innovations start in research labs, but translating them into real-world, scalable products requires a skilled AI Product Manager. They must:

• Understand AI capabilities and limitations to avoid overpromising what the technology can do.
• Align AI solutions with customer needs and business goals rather than building AI for AI’s sake.
• Work closely with data scientists and engineers to define feasible, ethical, and impactful AI features.

AI is more than just another feature

AI isn’t just another feature – it’s transforming entire industries. Companies investing in AI need product leaders who can:

• Develop AI-driven business models and monetization strategies.
• Drive adoption of AI features by earning user trust and demonstrating clear value.
• Balance innovation with responsibility, ensuring AI products serve users effectively without unintended consequences.

AI Product Management is more than just a trend – it’s a necessity for companies serious about AI. A generalist PM might be able to oversee a digital product, but an AI PM understands the intricacies of AI development, deployment, and scaling. As AI continues to reshape industries, businesses need AI-savvy product leaders to ensure these technologies are used effectively, ethically, and strategically.

The growth of the AI Product manager role

A quick scroll through this insightful article from Lenny’s Newsletter about the tools Product Managers are using reveals a striking trend: there are already hundreds of 5-star-rated products on the market that either incorporate AI or are entirely driven by it. From customer service chatbots to AI-powered content generation tools, AI is no longer a futuristic concept – it’s here and rapidly reshaping how products are built and managed.

And the demand for AI-specific talent is skyrocketing. A simple search for “AI Product Manager” jobs on LinkedIn in the U.S. alone pulls up over 1,500 listings. That number only scratches the surface when you consider the rapidly growing tech hubs in China, India, and other parts of the world, where AI is already becoming integral to the product development process.

But why the sudden surge in popularity? Well, the rise of AI technologies is transforming industries across the board. As AI becomes embedded in more products, the need for specialized knowledge in both AI and Product Management has never been greater. 

Companies are looking for PMs who can not only understand the complexities of AI but also figure out how to integrate it seamlessly into products that solve real customer problems. The role of the AI Product Manager is no longer just about managing AI features, it’s about driving the product vision and strategy for AI-powered solutions in an increasingly AI-first world.

As AI continues to permeate tools and platforms across industries, staying ahead of the curve in product design is more important than ever. With AI constantly evolving, those who can bring the right mix of product management skills and AI know-how will be the ones leading the charge. That’s why I’ve put together this primer to help you catch up – and, more importantly, get ahead – in the world of AI Product Management.

As AI becomes an expectation, not an enhancement, you’ll need an AI Product Manager is place to transition to the product so that the AI capabilities continue to delight.

How do you become an AI Product Manager?

AI Product Management is a growing sub-discipline in the product world, and while it may seem intimidating at first, the path to becoming an AI Product Manager is more accessible than you might think. The biggest hurdle is grasping the foundational concepts behind AI technologies, but once you’ve got that down, you’ll be well on your way.

Here’s a roadmap to help you get started:

• Learn the fundamentals of AI and ML: At the heart of AI Product Management is understanding the technologies that power AI-driven products. You don’t need to be an AI expert or developer, but you should be comfortable with the core concepts of AI and machine learning, such as supervised learning, neural networks, and natural language processing (NLP).
• Get hands-on with generative AI: A large chunk of AI technologies being applied in Product Management today is based on Generative AI models. Being able to prototype, define, and iterate on prompts is key. Even if you’re not working directly with OpenAI’s models, tools like their interactive playground and documentation are fantastic places to get started learning how to craft prompts.
• Explore AI learning resources: There are tons of free and paid courses that can help you build a solid foundation in AI/ML. Some platforms to check out include: Udemy, Coursera, and edX (for accessible courses ranging from beginner to advanced), as well as MIT’s OpenCourseWare (for more in-depth, academic-style learning).
• Follow AI thought leaders: Learn from the experts! Start by following figures like Andrew Ng, Fei-Fei Li, and Allie K. Miller, but also dig deeper into the broader AI community. Social media platforms, blogs, and research papers are all gold mines for staying updated with the latest advancements in AI/ML.
• Leverage AI tools: Familiarize yourself with popular AI tools and platforms such as Microsoft Azure AI, Google AI, and TensorFlow. These tools often provide robust documentation and resources for Product Managers, even if you aren’t directly coding the models.

What skills do you need as an AI Product Manager?

To succeed in AI Product Management, you’ll need a diverse skill set that spans traditional product management knowledge, a technical understanding of AI, and a keen ability to innovate. Here are the key hard and soft skills every aspiring AI Product Manager should develop:

• Strong Product Management foundation: Just like any other PM, you’ll need to know the fundamentals of Product Management, such as managing the entire Product Management lifecycle – from ideation to launch and iteration. You’ll need to manage cross-functional teams, prioritize features, and communicate effectively with key stakeholders.
• Understanding AI and machine learning: As mentioned, a good knowledge of machine learning and AI is essential, even if you’re not building the models yourself. Being able to speak the language of developers and data scientists will help you bridge the gap between technical and non-technical teams.
• Prompt engineering: A unique skill for AI Product Managers, prompt engineering involves crafting inputs for Generative AI tools to get the desired output. The ability to design effective prompts and evaluate AI outputs is key to building AI-powered features that meet user needs.
• Data-driven decision making: AI relies on large datasets to function properly, so having a strong ability to analyze data and make data-driven Product Management decisions based on insights is crucial. This means working with data scientists and engineers to interpret results, run experiments, and optimize features.
• User-centered design: Despite being built on complex technology, AI-powered products must remain user-friendly. Understanding how to balance technical capabilities with user experience is essential.
• Problem-solving and innovation: AI Product Managers must constantly think creatively about how AI can be applied to solve problems. This requires thinking outside the box, iterating rapidly, and adjusting features as you learn more about user needs.
• Ethical considerations and responsible AI: With AI technologies come new ethical challenges, such as data privacy, bias, and fairness. As an AI Product Manager, you’ll need to be able to navigate these issues thoughtfully and ensure the responsible development of AI products.

How do I succeed as an AI Product Manager?

To succeed as an AI Product Manager, leveraging the right tools and staying ahead of the AI curve is essential. Tools like ProdPad can help you manage the flood of customer feedback and distill it into actionable insights, making your Product Management process far more efficient.

Right now, AI-driven features might feel like a “delight,” but over time, they’ll become standard expectations. It’s vital to understand how AI will evolve from a value-added feature to a basic requirement for users – and as a Product Manager, you need to embrace that shift early on.

Why It’s Important to Stay Ahead of the Curve

In Product Management, features often move from “delighters” to “basic expectations,” as outlined in the Kano model. AI features are no different – they start as a novel addition to your product but will eventually become a baseline requirement for users.

Staying ahead means:

• Adopting AI tools now: Familiarize yourself with AI capabilities before they become mandatory.
• Integrating AI into your workflow: Automate processes, analyze data faster, and improve customer experience.
• Constant innovation: Always look for ways AI can add value to your product and processes.

By proactively integrating AI, you’ll ensure that your products not only meet but exceed user expectations – staying ahead of competitors in an ever-changing landscape. 

Interview tips for an AI Product Manager role

As AI products continue to surge in popularity, the demand for skilled AI Product Managers is only going to increase. In fact, these roles could soon become the norm in Product Management – making it a savvy career move to specialize in AI now.

However, mastering the fundamentals of AI and staying on top of rapid advancements is key to impressing during interviews. You’ll need to demonstrate that you’re not only up-to-date with AI technologies but also capable of using them strategically in Product Management.

Here are my top tips to help you shine in an AI Product Manager job interview:

1. Understand the core AI concepts

A strong foundation in AI fundamentals is essential for an AI Product Manager role. Be sure to understand neural networks and how they mimic the human brain to process information. Large Language Models (LLMs) are another key area – these power tools like GPT and are reshaping how AI interacts with users. 

Deep learning plays a crucial role in improving machine learning performance, and Natural Language Processing (NLP) enables machines to process and analyze human language. Having a grasp of these concepts will help you speak confidently about AI’s capabilities and limitations.

2. Master key AI terminology

AI comes with a language of its own, and hiring managers will expect you to be fluent in it. Be prepared to explain terms like embeddings, prompts, and LLMs, especially if you’re applying for a Generative AI role. Understanding how these elements work together will show that you can communicate effectively with engineers and business stakeholders while making informed product decisions.

3. Showcase your problem-solving skills

AI is all about solving problems in new and efficient ways, so be ready to share real-world examples of how AI can be used to address specific challenges. Go beyond just describing the problem – explain which AI techniques would be best suited to tackle it and why. Demonstrating your ability to think critically about AI applications will make you stand out in an interview.

4. Dive into the ethical considerations

AI comes with complex ethical dilemmas, and companies want Product Managers who understand these risks. Bias in datasets can lead to unfair model outcomes, and without careful oversight, AI can cause unintended harm. Be ready to discuss how you would minimize these ethical risks in your product strategy, whether through bias mitigation techniques, transparency in AI decision-making, or ensuring human oversight in critical use cases.

5. Show you’re agile in a fast-paced field

AI is an ever-changing industry, and companies want Product Managers who can keep up. Show that you stay informed by following AI Product leaders, participating in discussions, and keeping up with new research and tools. Highlight any hands-on experience you have with AI frameworks, experimentation, or collaborations with data science teams.

Demonstrating your ability to adapt and stay ahead of trends will prove that you’re ready to lead AI-driven products in a fast-paced environment.

Of course, to fully nail the AI Product Management interview, you’ll also need the skills to excel when answering the traditional Product Management questions too. Here’s a list of the 12 most common Product Manager interview questions, and advice on how to answer them:

AI is now essential 

The AI Product Management role has come to being because of how important it is. AI is everywhere, and now businesses need PMs who have the soft skills to handle the technology while also using it to create products that delight users. It’s a difficult balancing act that’s going to get even more common over time. 

Just because AI has been slapped on top of the job role doesn’t mean that AI is here to take over Product Management. It’s here to amplify what good Product Managers already do. Whether you’re crafting AI-driven features or simply incorporating AI to streamline workflows, understanding AI is quickly becoming an essential skill for every Product Manager.

AI can enhance what you do – and that’s exactly what CoPilot is built for. Designed specifically for Product Managers, our advanced AI makes it easier to manage and share your product roadmap, prioritize features, and assist with virtually every task in your day-to-day. Try CoPilot and see how it can become your AI-powered partner today.