The AI revolution is here, and it’s time to assess how it impacts us – entrepreneurs and product leaders, and specifically how it should impact our product strategy.

Today, I’ll talk about why it’s even more important to have a well-articulated product strategy nowadays, and how you can use it once done.

In upcoming posts, I’ll address various aspects of the product strategy and how they are impacted by the AI revolution:

• The problem
• The solution
• The product

What’s Happening to Your Customers

Since AI and other technological advancements have made it easier and faster than ever to launch new products, your customers are now faced with an overwhelming array of alternatives. Every market is saturated with similar-looking tools, each promising comparable benefits. So many companies are competing for your potential customers’ attention and limited budgets. They are flooded with information and offers that only create noise, making it harder for customers to distinguish between them and make informed decisions.

At the same time, your customers themselves are changing. They are using AI daily, and as a result, their expectations have shifted. I’m not talking about their expectations from the product, but rather from the information they are served. They expect succinct answers. They have less patience for long explanations or vague positioning. They want to know immediately what you offer, why it matters to them, and why they should trust you.

What This Means for You

Simply put, you are facing the fiercest competition you’ve ever had. 

To win, you must navigate smartly.

And although every successful product’s journey includes lots of trial and error, you can’t afford to do it blindly – spray and pray – and hope that somehow one of your attempts will work.

It’s about the quality and strategic reasoning, not about the volume of your experiments.

That’s exactly where product strategy comes in. It defines what you’re trying to achieve and why you believe it will work. It helps you prioritize what matters most and provides a filter for evaluating opportunities, customer feedback, and new ideas. It forces you to look at everything you do through the customer lens and ask the hard questions that will keep you rooted in reality. 

Product Strategy in a Nutshell

Product strategy, first and foremost, is a strategy. That means it’s a set of choices you make under uncertainty. And that’s why it’s hard. 

You can’t know everything, but you still need to decide on things that would have a tremendous impact on future outcomes.

At its core, product strategy answers four deceptively simple questions:

• What problem are you solving?
• For whom?
• Why should they pick you? 
• What value are you delivering?

But here’s where most teams fall short. When asked “Who is your customer?” too many startups gave me answers that essentially meant “people who need this product.” Of course, that doesn’t help us in any way – it didn’t add any new information.

It’s not actionable either, as you can’t find these people, understand their context, or build the right thing for them. Without specificity, you’re stuck in a loop talking to yourself.

The same goes for the problem you’re solving. It needs to be articulated at a much deeper level than most teams realize –  not just a high-level pain point, but a clear, concrete, real-world problem that your ideal customer recognizes immediately as theirs.

This depth and clarity are what a good product strategy forces you to confront. It ensures that everything you build is anchored in the reality of real people and real needs, not just assumptions and aspirations.

Product Strategy Is a Great AI Context

If you’ve taken the time to articulate exactly what problem you’re solving, for whom, why they should choose you, and what value you provide, you now have an asset that can amplify throughout your company. You can feed this clarity into your internal GPT prompts, ensuring that every draft, analysis, or proposal your teams generate is already grounded in your strategy.

You can provide this context to developers working in AI-assisted environments like Cursor or Copilot, so their code, documentation, and decisions reflect the product’s purpose. You can use it to brief marketing, support, and sales tools, so every customer touchpoint reinforces your differentiation.

This matters because AI tools excel at accelerating work, but they don’t care what direction you’re pointing them in. Without a clear product strategy, AI will help you go fast in every possible direction at once. With it, they help you move faster and more consistently toward your actual goals.

In the AI era, your product strategy doesn’t just guide humans. It guides machines. The clearer and sharper it is, the more leverage you create across the entire organization.