Navigating Value Creation in Data and AI Product Management

Today, I’m responding to a listener's question about what it takes to succeed as a data or AI product manager, especially if you’re coming from roles like design/BI/data visualization, data science/engineering, or traditional software product management. This reader correctly observed that most of my content “seems more targeted at senior leadership” — and had asked if I could address this more IC-oriented topic on the show. I’ll break down why technical chops alone aren’t enough, and how user-centered thinking, business impact, and outcome-focused mindsets are key to real success — and where each of these prior roles brings strengths and/or weaknesses. I’ll also get into the evolving nature of PM roles in the age of AI, and what I think the super-powered AI product manager will look like.

• Who can transition into an AI and data product management role? What does it take? (5:29)
• Software product managers moving into  AI product management (10:05)
• Designers moving into data/AI product management (13:32)
• Moving into the AI PM role from the engineering side (21:47)
• Why the challenge of user adoption and trust is often the blocker to the business value (29:56)
• Designing change management into AI/data products as a skill (31:26)
• The challenge of value creation vs. delivery work — and how incentives are aligned for ICs  (35:17)
• Quantifying the financial value of data and AI product work(40:23)

• “Who can transition into this type of role, and what is this role? I’m combining these two things. AI product management often seems closely tied to software companies that are primarily leveraging AI, or trying to, and therefore, they tend to utilize this AI product management role. I’m seeing less of that in internal data teams, where you tend to see data product management more, which, for me, feels like an umbrella term that may include traditional analytics work, data platforms, and often AI and machine learning. I’m going to frame this more in the AI space, primarily because I think AI tends to capture the end-to-end product than data product management does more frequently.” — Brian (2:55)

• “There are three disciplines I’m going to talk about moving into this role. Coming into AI and data PM from design and UX, coming into it from data engineering (or just broadly technical spaces), and then coming into it from software product management. I think software product management and moving into the AI product management - as long as you’re not someone that has two years of experience, and then 18 years of repeating the second year of experience over and over again - and you’ve had a robust product management background across some different types of products; you can show that the domain doesn’t necessarily stop you from producing value. I think you will have the easiest time moving into AI product management because you’ve shown that you can adapt across different industries.” - Brian (9:45)

• “Let’s talk about designers next. I’m going to include data visualization, user experience research, user experience design, product design, all those types of broad design, category roles. Moving into data and/or AI product management, first of all, you don’t see too many—I don’t hear about too many designers wanting to move into DPM roles, because oftentimes I don’t think there’s a lot of heavy UI and UX all the time in that space. Or at least the teams that are doing that work feel that’s somebody else’s job because they’re not doing end-to-end product thinking the way I talk about it, so therefore, a lot of times they don’t see the application, the user experience, the human adoption, the change management, they’re just not looking at the world that way, even though I think they should be.” - Brian (13:32)

• “Coming at this from the data and engineering side, this is the classic track for data product management. At least that is the way I tend to see it. I believe most companies prefer to develop this role in-house. My biggest concern is that you end up with job title changes, but not necessarily the benefits that are supposed to come with this. I do like learning by doing, but having a coach and someone senior who can coach your other PMs is important because there’s a lot of information that you won’t necessarily get in a class or a course. It’s going to come from experience doing the work.” - Brian (22:26)

• “This value piece is the most important thing, and I want to focus on that. This is something I frequently discuss in my training seminar: how do we attach financial value to the work we’re doing? This is both art and science, but it’s a language that anyone in a product management role needs to be comfortable with. If you’re finding it very hard to figure out how your data product contributes financial value because it’s based on this waterfalling of “We own the model, and it’s deployed on a platform.” The platform then powers these other things, which in turn power an application. How do we determine the value of our tool? These things are challenging, and if it’s challenging for you, guess how hard it will be for stakeholders downstream if you haven’t had the practice and the skills required to understand how to estimate value, both before we build something as well as after?” - Brian (31:51)

• “If you don’t want to spend your time getting to know how your business makes money or creates value, then [AI and data product management work] is not for you. It’s just not. I would stay doing what you’re doing already or find a different thing because a lot of your time is going to be spent “managing up” for half the time, and then managing the product stuff “down.” Then, sitting in this middle layer, trying to explain to the business what’s going to come out and what the impact is going to be, in language that they care about and understand. You can't be talking about models, model accuracy, data pipelines, and all that stuff. They’re not going to care about any of that. - Brian (34:08)