As foundational AI models become more accessible, the key to winning the market is shifting from having the most advanced model to creating the best user experience. This "age of productization" means skilled product managers who can effectively package AI capabilities are becoming as crucial as the researchers themselves.
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As AI makes it easy to generate 'good enough' software, a functional product is no longer a moat. The new advantage is creating an experience so delightful that users prefer it over a custom-built alternative. This makes design the primary driver of value, setting premium software apart from the infinitely generated.
Simply offering the latest model is no longer a competitive advantage. True value is created in the system built around the model—the system prompts, tools, and overall scaffolding. This 'harness' is what optimizes a model's performance for specific tasks and delivers a superior user experience.
AI makes the technical 'doing' of business, like coding, accessible to everyone. The durable competitive edge is no longer the ability to build a product, but the ability to reach and acquire customers. Audience and distribution channels are the new defensible assets.
AI and cataloging tools have compressed the competitive research phase from days to minutes. This frees designers from tactical UI comparison and empowers them to focus on higher-level strategic work: crafting product narrative and system architecture, a role previously reserved for senior leadership.
As AI commoditizes the 'how' of building products, the most critical human skills become the 'what' and 'why.' Product sense (knowing ingredients for a great product) and product taste (discerning what’s missing) will become far more valuable than process management.
Technical implementation is becoming easier with AI. The critical, and now more valuable, skill is the ability to deeply understand customer needs, communicate effectively, and guide a product to market fit. The focus is shifting from "how to build it" to "what to build and why."
As AI makes it incredibly easy to build products, the market will be flooded with options. The critical, differentiating skill will no longer be technical execution but human judgment: deciding *what* should exist, which features matter, and the right distribution strategy. Synthesizing these elements is where future value lies.
As AI automates synthesis and creation, the product manager's core value shifts from managing the development process to deeply contextualizing all available information (market, customer, strategy) to define the *right* product direction.
Contrary to the belief that distribution is the new moat, the crucial differentiator in AI is talent. Building a truly exceptional AI product is incredibly nuanced and complex, requiring a rare skill set. The scarcity of people who can build off models in an intelligent, tasteful way is the real technological moat, not just access to data or customers.
The era of winning with merely functional software is over. As technology, especially AI, makes baseline functionality easier to build, the key differentiator becomes design excellence and superior craft. Mediocre, 'good enough' products will lose to those that are exceptionally well-designed.
