To assess a product manager's AI skills, integrate AI into your standard hiring process rather than just asking theoretical questions. Expect candidates to use AI tools in take-home case studies and analytical interviews to test for practical application and raise the quality bar.

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Formal AI competency frameworks are still emerging. In their place, innovative companies are assessing employee AI skills with concrete, activity-based targets like "build three custom GPTs for your role" or completing specific certifications, directly linking these achievements to performance reviews.

For product managers not yet working on AI, the best way to gain experience is to build simple AI tools for personal use cases, like a parenting advisor or a board game timer. Using no-code prototyping tools, they can learn the entire development lifecycle—from ideation to prompting and user feedback—without needing an official AI project at work.

To simulate interview coaching, feed your written answers to case study questions into an LLM. Prompt it to score you on a specific rubric (structured thinking, user focus, etc.), identify exact weak phrases, explain why, and suggest a better approach for structured, actionable feedback.

Because PMs deeply understand the customer's job, needs, and alternatives, they are the only ones qualified to write the evaluation criteria for what a successful AI output looks like. This critical task goes beyond technical metrics and is core to the PM's role in the AI era.

To build an AI-native team, shift the hiring process from reviewing resumes to evaluating portfolios of work. Ask candidates to demonstrate what they've built with AI, their favorite prompt techniques, and apps they wish they could create. This reveals practical skill over credentialism.

Create an AI agent that automatically reviews interview transcripts. By feeding it a job description and company values as knowledge sources, the agent can provide a "yes/no/maybe" hiring recommendation with reasoning, serving as an effective thought partner and bias check for hiring managers.

The rise of AI tools isn't replacing the PM role, but transforming it. PMs who embrace an "AI-enhanced" workflow for research, docs, and prototyping will gain a massive productivity advantage, ultimately displacing those who stick to traditional methods.

Upload interview transcripts and a job description into an AI tool. Program it to define the top criteria for the role and rate each candidate's transcript against them. This provides an objective analysis that counteracts personal affinity bias and reveals details missed during the live conversation.

Since AI assistants make it easy for candidates to complete take-home coding exercises, simply evaluating the final product is no longer an effective screening method. The new best practice is to require candidates to build with AI and then explain their thought process, revealing their true engineering and problem-solving skills.

Traditional hiring assessments that ban modern tools are obsolete. A better approach is to give candidates access to AI tools and ask them to complete a complex task in an hour. This tests their ability to leverage technology for productivity, not their ability to memorize information.