A new organizational model is emerging where companies create small, agile teams comprising a senior expert, an engineer, and a marketer. Empowered by AI tools, these pods can develop and launch new products in a week, a task that once required large teams and over six months.
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The traditional, linear handoff from product (PRDs) to design to dev is too slow for AI's rapid iteration cycles. Leading companies merge these roles into smaller, senior teams where design and product deliver functional prototypes directly to engineering, collapsing the feedback loop and accelerating development.
AI will make the traditional "product pod" structure obsolete for design. Designers, empowered to learn contexts faster and cover more ground, will operate in a more fluid, centralized team. They will be deployed across entire user journeys that span multiple teams, rather than being calcified within a single product area.
To adapt to AI-driven workflows, Microsoft's LinkedIn combined product managers, designers, and engineers into a single "full stack builder" role. This structural change eliminates communication bottlenecks and empowers individuals to leverage AI tools for end-to-end product development, drastically increasing speed.
While traditionally creating cultural friction, separate innovation teams are now more viable thanks to AI. The ability to go from idea to prototype extremely fast and leanly allows a small team to explore the "next frontier" without derailing the core product org, provided clear handoff rules exist.
Instead of traditional IT departments, companies are forming small, cross-functional teams with a senior engineer, a subject matter expert, and a marketer. Empowered by AI, these agile groups can build new products in a week that previously took teams of 20 people six months, radically changing organizational structure.
Small firms can outmaneuver large corporations in the AI era by embracing rapid, low-cost experimentation. While enterprises spend millions on specialized PhDs for single use cases, agile companies constantly test new models, learn from failures, and deploy what works to dominate their market.
The traditional PM function, which builds sequential, multi-month roadmaps based on customer feedback, is ill-suited for AI. With core capabilities evolving weekly, AI companies must embed research teams directly with customer-facing teams to stay agile, rendering the classic PM role ineffective.
The traditional tech team structure of separate product, engineering, and design roles is becoming obsolete. AI startups favor small teams of 'polymaths'—T-shaped builders who can contribute across disciplines. This shift values broad, hands-on capability over deep specialization for most early-stage roles.
AI tools reduce the communication overhead and lengthy handoffs that traditionally separated product and engineering. By streamlining the path from idea to code, AI makes the combined Chief Product and Technology Officer (CPTO) role more viable, enabling a single leader to manage both functions effectively.
To launch new products and compete with agile startups, embed a small "incubation seller" team directly within the technology organization. This model ensures tight alignment between product, engineering, and the first revenue-generating efforts, mirroring the cross-functional approach of an early-stage company.
