Why product management is becoming obsolete in AI-driven teams

Aug 2, 2026 · Lenny's Podcast
🎧 PodShort 84 min squeezed to 3 AI SprinklerAS Sales Tech New
Episode artwork
Tom Verrilli
Chief Product Officer at Whatnot
Lenny's Podcast
84 min squeezed to 3
Full episode from Lenny's Podcast
Quotable Moments

The only argument for why you would want product management to be a specialist function is really, it's a trade not a qualification.

Tom VerrilliChief Product Officer at Whatnot
00:38

Hiring so many PMs infantilizes the engineers and the designers who are perfectly capable of making good decisions, but just never had to because there was always a PM to babysit them.

Tom VerrilliChief Product Officer at Whatnot
00:09
Key Insights
  • Whatnot's core philosophy regarding product management is encapsulated in the statement, 'We regret that product management exists.' This doesn't mean they don't value PMs, but rather they aim to only hire them for specific needs, not as a default.
  • Product management, at its core, is a 'trade' or 'muscle' that is developed through consistent practice, not a fixed 'qualification.' Abstracting this work away from engineers and designers can lead to their skills in this area becoming underdeveloped.
  • A common pitfall in scaling tech companies is the tendency to over-hire product managers, which can 'infantilize' engineers and designers by preventing them from making crucial product decisions, as there's always a PM to 'babysit.'
  • Product teams should strive for a model where it's 'optimally not to have a product manager' whenever possible, enabling designers and engineers to take ownership of product decisions and development steps, thus strengthening their own product-building muscles.
  • There's a beneficial industry shift towards product leaders (like VPs and Directors) engaging more in 'Individual Contributor' (IC) work, directly contributing to product development rather than solely managing, which enhances direct impact and connection to ground truth.
  • Artificial intelligence is significantly enhancing the capabilities of non-PM roles (like engineers and designers) to perform product-related tasks, making it easier to gather data, understand complex systems, and move faster, thus reducing the explicit need for PMs in many instances.
  • Instead of rigidly mapping Product Managers to specific teams, a more effective strategy is to map them to discrete 'problems' or 'core projects,' allowing for greater flexibility and ensuring PMs are focused on areas of genuine need, rather than being a default team member.
  • A crucial skill for successful PMs (and other roles) is the ability to engage in 'systems thinking' – not just focusing on an immediate problem, but projecting potential future outcomes and implications at scale, fostering proactive decision-making.
Metrics Mentioned
  • 31,832 people applied to be a product manager at Whatnot, we hired one. (This highlights Whatnot's extremely selective hiring process for product managers, emphasizing their preference for highly specific needs and capabilities.)
  • Whatnot has 'just passed 20 PMs' (specifically 21-22 PMs). (This number is considered 'pretty small' by Whatnot given the 'volume of GMV that our sellers move,' reinforcing their lean PM philosophy.)
  • E-commerce has never exceeded 20% of retail spend in America. (Used to illustrate that despite the growth of e-commerce, the vast majority of retail shopping still occurs in physical stores, suggesting there's a strong social/cultural element to shopping.)
  • E-commerce is around 75-25 (physical vs e-commerce) in the UK. (Contrasts with the US e-commerce penetration, showing varying market dynamics.)
  • Less than '1,000 people on a stream' at Twitch was considered 'non-economic.' (Highlights the different economic models and scale expectations between platforms like Twitch (CPM-driven entertainment) and Whatnot (commerce).)
  • Whatnot streams with '30-50 people' are considered huge successes. (Illustrates how Whatnot's economic model (commerce) allows for profitability and engagement with much smaller, more intimate audiences compared to entertainment platforms.)
  • 7 and a half trillion dollar industry (retail/commerce). (Refers to the massive scale of the retail industry, suggesting that there's room for diverse shopping experiences beyond just agentic commerce.)

RevBots.ai View:

  • AI Sprinkler teams can reduce PM overhead by empowering engineers with AI tools.
  • ARM-stage companies will see PM roles evolve into systems thinking specialists.
  • SaaS Hoarders often over-hire PMs, creating bottlenecks in decision-making.
🎧Full Episode:Lenny's Podcast →