What is an AI Product Manager?

Product Management
Exponent TeamExponent TeamLast updated

Here's what being an AI product manager actually means.

Want to get a job as an AI PM?

The best approach is to focus on becoming an excellent PM who leverages AI effectively, not an "AI PM" chasing market hype.

Right now, having real experience and demonstrated knowledge with AI is a big differentiator because people want unambiguous signals for these high-leverage positions.

What is an AI PM?

Over time, the role of an "AI product manager" has changed.

Pre-ChatGPT

Deeply technical folks used to work alongside data scientists on narrow ML models, computer vision systems, and recommendation engines.

These were specialists who understood neural networks, training data, and model architecture decisions.

Post-ChatGPT

Companies slap "AI PM" on roles that are regular PMs working on products that happen to use LLMs or have some AI features baked in.

Most "AI PM" roles today are better described as AI-literate or AI-informed PMs.

These are similar to API PMs who don't build protocols. Instead, they manage API-facing products.

Or Platform PMs who manage platform layers.

Types of AI PM Companies

These are the types of job postings that ask for AI skills.

Type 1: AI Tool Integrators

Most companies that think they need an AI PM are in this category:

  • Implementing AI tools for analytics or admin augmentation
  • Integrating plug-and-play AI features (customer service chatbots)
  • Adding AI capabilities to existing workflows

These are the least applicable jobs for an actual "AI product manager."

Type 2: AI-Powered Product Builders

These are companies building agentic client-facing solutions.

Product managers work closely with QA to manage and monitor behavior post-development.

  • AI tools on top of existing frameworks and LLMs
  • Products where AI is core to the user experience
  • Custom implementations using foundation models

Skills needed: RAG, MCPs, LLMs, and ML basics enough to make informed product decisions.

Type 3: AI Infrastructure

The product managers build frameworks, LLMs, and SaaS core engines/tools.

There are very few companies in the entire world doing this.

What does an AI PM do?

Day-to-Day

These days, it's likely that your life as an "AI PM" will be mostly prompt engineering.

You'll be working with prompts for user-facing products or within your own workflows to be more efficient.

Much of your day-to-day will be focused on high-level designs of agentic client-facing products.

You'll then work to define success and monitor behavior closely after a launch.

"Do users like these AI products?"

Technical Skills

  • LLM developer tools proficiency: The ability to independently iterate on shaping how the LLM behaves and what data it has access to requires a blend of design, product, and engineering skills.
  • Mastering evaluations: Knowing how to assess your model's performance is what makes a product robust and scalable.
  • Understanding probabilistic outputs: Regular PMs build products with deterministic results. No matter how often you go through the same workflow, it always yields the same results.

Workflow Impact

Using AI as a product manager can help in a few ways:

  • Writing requirements, docs, analyzing data, and summarizing feedback.
  • Generating initial mockups when waiting on designers,
  • Doing first-pass analysis of user feedback,
  • Getting high-level proposals before talking to tech leads.

Reality Check

Companies Are Confused

AI PMs tend to be one of the first AI hires that many companies make.

Unfortunately, the people making hiring decisions often don't have expertise in the space.

The job market has a lot of noise, and hiring managers can't discern real "AI signals" from noise.

What Companies Actually Want

Companies want PMs who understand AI concepts enough to make informed product decisions, not folks who can train models from scratch.

  • The pattern: This follows the same cycle as Web3 PM (fizzled out) and Mobile PM (became baseline expectation).
  • Prediction: Eventually, understanding AI concepts will be table stakes for any PM, like knowing APIs, basic auth principles, or RBAC today.

Red Flags

Don't trust companies that:

  • Want to "shoehorn AI into existing products"
  • List vague "AI strategy" requirements
  • Can't explain specific AI use cases
  • Are regular PM jobs with AI buzzwords

Many companies have strict rules about sharing documentation with AI tools for security purposes.

You should always ask, "How does the company handle AI tool usage with proprietary data?"

Skills for AI PMs

Core PM fundamentals haven't changed

You're still finding problems, validating them, building solutions, testing, launching, measuring, and iterating.

AI powers more of these processes now.

For AI-Literate PMs (Most Roles)

  • Understanding RAG, MCPs, LLMs, and ML basics
  • Prompt optimization and evaluation frameworks
  • Working with probabilistic vs. deterministic systems
  • Model performance monitoring

For True AI PMs (Rare Roles)

  • Deep collaboration with research scientists, research engineers, and data engineers, building use cases that models can support.
  • Goal: Building vertically integrated gen-AI tools that can automate customer touchpoints with hyper-personalization.
  • Next level: Building purpose-built agentic AIs to handle tasks like printing return labels, updating databases, calling external APIs—so you don't have to write code in the future.

When to Take an AI PM Role

Here's when you should consider applying to and taking an AI PM job.

Good Reasons

  • The company has clear AI use cases and can explain precisely why they need AI expertise.
  • You want to be on the cutting edge of what will eventually become standard PM skills.

Bad Reasons

  • The company is "panicking that they don't know enough about AI." They want someone to arrive with plenty of AI experience to magically solve all their problems.
  • You're chasing buzzwords without understanding the actual work involved.

AI PM Interview Questions

These are sample interview questions asked to AI product managers.

Probabilistic vs. Deterministic Systems

  • Scenario: Your team is replacing a rule-based customer service routing system with an LLM-powered one. How would you approach setting user expectations differently, and what new metrics would you need to track?

Real AI Use Cases

  • Case Study: A company wants to "add AI to increase user engagement by 20%." What questions would you ask to determine if this is a legitimate AI opportunity?
  • Prioritization: Given three potential AI features - a recommendation engine, a chatbot, and automated content tagging. How would you evaluate which delivers the most business value? What criteria matter most?

RAG

  • Problem-Solving: Users complain that your AI assistant gives outdated information about company policies. Walk me through how you'd diagnose and solve this using RAG principles.
  • Architecture: Explain how you'd structure a knowledge base for an AI system that needs to answer both general questions and company-specific queries. What are the key considerations?

Prompt Engineering

  • Optimization: Your customer service AI is escalating too many simple requests to humans. How would you approach improving this without being able to code?
  • Measurement: Design an evaluation framework for an AI writing assistant. What metrics would you track, and how would you balance automated vs. human evaluation?

Model Performance

  • Metrics: Your AI feature launched with 85% accuracy in testing, but users are reporting poor experiences. What could be causing this gap, and how would you investigate?
  • Iteration: Describe how you'd set up ongoing monitoring for an AI-powered product recommendation system. What would trigger you to retrain or adjust the system?

User Experience with AI

  • Design Thinking: How do you design user interfaces for probabilistic AI outputs? Give specific examples of how you'd handle uncertainty in the UI.
  • User Research: What questions would you ask users to understand if an AI feature is actually solving their problem, vs. being a novelty?

Measuring Success

  • KPIs: For an AI-powered content creation tool, how would you define and measure success beyond traditional engagement metrics?
  • A/B Testing: What are the unique challenges of A/B testing AI features, and how would you address them?

AI-Powered Products

  • Quality Assurance: Post-launch, your AI travel agent occasionally suggests impossible itineraries. How would you systematically improve this?

Real-World Constraints

  • Data Privacy: Your company has strict rules about not sharing proprietary data with AI tools. How does this constraint affect your product development process?
  • Scaling Challenges: Your AI feature works well with 1,000 users but starts failing with 10,000. What could be causing this, and how would you approach the solution?

Market Understanding

  • Competitive Analysis: How would you evaluate whether a competitor's AI feature is genuinely superior or just marketing hype?
  • Future Planning: Given that "AI PM" might become just "PM" in the future (like mobile did), how would you position yourself and your product strategy?

Business Impact

  • ROI Justification: Your engineering team says implementing AI will take 6 months and incur significant computing costs. How do you build a business case that accounts for AI-specific uncertainties?
  • Risk Management: What are the most significant risks when launching AI-powered products, and how would you mitigate them?

Cross-Functional Collaboration

  • Research Partnership: How would you structure collaboration between product, research scientists, and engineering teams when building AI products?
  • Ethical Considerations: Your AI system shows potential bias in its outputs. Walk me through your approach to identifying, measuring, and addressing this issue.

Innovation and Vision

  • Roadmap Planning: Looking 18 months ahead, how do you balance building with current AI capabilities vs. betting on future improvements in foundation models?
  • Platform Thinking: How would you design an AI product architecture that can adapt as underlying models improve without requiring complete rebuilds?

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