The 2024 Pragmatic Institute "State of Product Management & Marketing Report" was released Tuesday, and it delivers a clear message: AI is no longer optional—it’s the engine steering the future of product management. If you’re not onboard, you’re already drifting behind.
The survey numbers make the case:
- 65% of product professionals have integrated AI
- 78% of top-performing companies are integrating AI
- 60% say AI is enabling their company to drive innovation and open new markets
- 48% report that AI provides a significant competitive edge
- 43% say AI enhances customer retention and engagement
One survey respondent captured the urgency perfectly: “Let’s not be blind to how quickly AI is changing things, lowering barriers to entry, and creating disruption. Technology obsolescence risk is real.”
The takeaway is clear: AI isn’t just a tool for tomorrow. It’s driving success today.
"AI is already here, and the question isn’t whether to adopt it anymore—it’s how to make it work in a way that truly helps your team," said Test Double CEO Todd Kaufman. "We’re seeing it everywhere—from how our developers and product managers work to how our clients are solving problems and finding opportunities. The leaders who succeed are the ones who thoughtfully align AI with their goals and values, using it to drive real business results (or outcomes or value)."
Whether you’re cautiously exploring AI or fully deploying it, this blog dives into the report’s findings—including actionable steps to start implementing AI integration on your product team.
What’s the catch? The real AI challenges
While the link between AI adoption and revenue growth is clear, AI won’t save a team without a clear strategy or the courage to tackle tough questions.
The report highlights several key challenges to effective AI adoption:
- Data privacy and security: The #1 concern for 66% of leaders
- Skill gaps: 59% say a lack of AI expertise is holding them back
- Uncertain ROI: Over half of teams are struggling to justify AI investments
- Regulatory hurdles: A worry for 49%, especially in global markets
These challenges underline a critical point: AI is only as effective as your strategy for mitigating its risks. Security gaps, ethical concerns, and expertise shortages cannot be ignored.
To lead with AI, you must address these challenges head-on. Transparency, fairness, and accountability are the foundation of responsible adoption.
AI’s potential to transform your business is real—but only if it’s guided by thoughtful leadership, a clear outcome-driven approach, and a strong strategic foundation.
How are product managers using AI?
Most product managers are using AI for routine tasks like:
- Routine tasks or administrative work (63%)
- Descriptive tasks (63%)
- Analyzing data (51%)
These applications are valuable—AI is saving time, improving efficiency and automating the busywork. But here’s the catch: this is just scratching the surface.
AI’s real potential lies in strategic, high-impact roles, including:
- Competitive analysis (40%)
- Diagnostic tasks (39%)
- Optimizing features (35%)
Yet, adoption in these areas remains slow. Many teams are focused on incremental improvements, rather than reimagining how AI can drive smarter decision-making and enhance competitive positioning.
To unlock AI’s full potential, product leaders need to move beyond operational tasks. Use AI not just to streamline workflows, but to drive smarter strategies, uncover untapped opportunities, and deliver differentiated products.
Your challenge as product leadership? Push beyond the basics and invest in AI’s higher-order functions. That’s how you turn AI from a tool into a game-changer.
AI success starts with closing the skills gap
AI isn’t a magic cure-all—it’s a tool that demands mastery. As product teams move beyond simple adoption, the skills gap is becoming the next big hurdle.
The report identifies key competencies for AI-driven product management:
- Prompt engineering (61%)
- Ethical decision-making in AI (61%)
- Understanding machine learning (58%)
- Data analytics proficiency (58%)
Interestingly, only 15% of respondents consider technical programming skills critical. This signals a shift: success with AI isn’t just about coding—it’s about leaders who can ask the right questions, interpret insights, and ensure AI is deployed responsibly and strategically.
“Simply using AI is table stakes; the real advantage comes from mastering it,” says Matt Wilkinson, VP of Marketing at Pragmatic Institute.
He’s right. Product leaders who prioritize education, ethical decision-making, and strategic implementation will position their teams to drive sustainable, long-term value.
The bottom line: Teams that don’t invest in mastering AI will fall behind. The leaders who close the skills gap today will define tomorrow’s success.
AI is here: 5 action steps to lead with purpose
The rise of AI in product management isn’t a passing trend—it’s a seismic shift already reshaping the industry. For Chief Product Officers and CTOs, the stakes couldn’t be higher.
The message is clear: Lead with intent.
Mastering AI isn’t about chasing buzzwords or rushing to adopt the latest tools. It’s about using AI to create something truly meaningful, not just functional products.
This requires proactive, purpose-driven leadership. It means investing in your team, refining your vision, and integrating AI in ways that drive real impact. When applied thoughtfully, AI can set you apart — improving customer outcomes, fostering alignment within teams, and laying the groundwork for sustainable growth.
This requires leadership that’s proactive and purpose-driven. It means investing in your team, refining your vision, and integrating AI in ways that drive real impact. When used thoughtfully, AI can set you apart—improving outcomes for customers, aligning teams, and laying a sustainable foundation for growth.
But success doesn’t happen by accident. It starts with defining the business problems you're solving and translating those into clear, measurable AI-powered goals.
Here’s how you begin to take action:
- Define the business problems you’re solving: Identify where AI can have the most significant impact. Focus on strategic areas where AI can drive innovation and help you stay ahead of the competition.
- Translate those problems into clear, measurable AI-powered goals: Align AI initiatives with your broader business strategy. Ensure your goals are actionable and tied to real outcomes, such as improving customer experience, driving revenue growth, or optimizing operations.
- Ensure your data is structured and ready for AI: Invest in reliable, organized, and accessible data. Ensure that your data is well-structured, scalable, and properly integrated across your organization. Clean, annotated data pipelines are essential to support AI-driven analytics and decision-making.
- Commit to ethical practices: Address issues such as bias, privacy, and transparency as part of your AI strategy. Ensure that your AI models are designed to align with ethical standards and support trust with your customers and stakeholders.
- Invest in upskilling your teams: AI isn’t just a technology issue—it’s a people issue. Provide your teams with the training they need to leverage AI effectively, whether it's data literacy, AI-specific skills, or ethical decision-making.
Leaders who take these steps will be the ones who don’t just adopt AI—they’ll leverage it to build smarter, more impactful products and strategies.
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