Why Are Companies Looking for AI Product Managers?
- Career
- 5 min read
Artificial intelligence is not merely something from the future. It is ubiquitous and is a principal way of innovating in all industries; product management is at the heart of all of this. Companies are searching for product managers who can deal with the complexities of working with AI-enabled products, the constraints of technology, the usage of business strategy, and meeting customer needs as well.
The Role of an AI Product Manager
An AI Product Manager by definition has responsibilities beyond those of a product manager. AI Product Managers are teachers and translators among data scientists, engineers, business leaders, and end users. They would identify areas where AI can add value, create product requirements that translate the needs of users to the organization, and ensure solutions are delivered in a responsible manner.
Along with managing roadmaps and product-market fit, product managers have to manage model performance, scalability and regulatory compliance. They also have to ensure the AI-enhanced features remain transparent, ethical, and explainable. According to Gartner, direct responsibility for artificial intelligence based products is going to account for over half of product management roles by 2027.
Skills Required for the Role
An AI Product Manager needs both a technical mindset and the determination to analyze and think through complex matters. A few of the key skills are:
- Technical literacy: Select some portion of ML, data pipeline, and limitations of AI technologies, to give a working knowledge. Coding is not necessary but one should have the capacity to communicate with engineers.
- Decision-making based on data: Able to work with sizable datasets and extract useful information.
- Ethics and governance: Profound knowledge in responsibly using AI and equity thereof, with some knowledge of national laws such as India DPDP Act and EU AI Act.
- User-centric design: Creating features that are easy to grasp for end users and that people trust.
- Business strategy: Connecting AI initiatives with concrete outcomes, so that the innovation will eventually translate into sustainable development.
As McKinsey has observed, product leaders must understand not just how AI functions, but how it creates value for people.
Why Every Product Manager is Expected to Have AI Competency?
The push for AI knowledge among product managers is driven by three major factors.
- AI has become a business imperative. Across sectors, companies are embedding AI into their offerings, not as a differentiator but as a necessity. NASSCOM reports that nearly three-quarters of Indian enterprises plan to increase their investments in AI by 2025.
- There is a widening talent gap. The number of AI-related product management roles is growing at double-digit rates each year, but the supply of professionals who can fill these positions is still limited. LinkedIn has recorded a 30 percent year-on-year growth globally in such roles.
- Customers expect intelligent products. Whether personalized recommendations or predictive help, users want an experience that is adaptive and seamless. Companies that do not deliver these must continually evaluate their advantage in today’s marketplace.
Career Pathways and Salary Benchmarks in AI Product Management
For students and professionals considering this career, the pathway from entry-level roles to executive leadership is becoming increasingly defined by AI expertise. Compensation is also reflecting the premium placed on this knowledge.
- Associate Product Manager (APM): This entry-level position focuses on using AI-driven tools and analytics while learning the fundamentals of product strategy.
In India, the average salary is between INR 18 and 22 LPA. - Product managers (PMs) oversee features and product lines and are in charge of integrating AI-powered features like automation and personalization.
In India, the average salary is between INR 22 and 46 LPA. - A senior product manager (SPM) is in charge of managing cross-functional teams, supervising larger AI projects, and guaranteeing delivery in relation to business objectives.
In India, the average salary is between INR 35 and 55 LPA. - Principal Product Manager: Balances innovation and governance by offering strategic guidance for the adoption of AI across various products.
In India, the average salary is between INR 50 and 65 LPA - Director of Product Management: Shapes the organization’s product vision that takes advantage of AI in alignment with business growth strategies.
In India, the average salary is between INR 65and 90 LPA - Vice President Product: Defines the product strategy globally, leading how AI will be used at scale to provide competitive products.
In India, the average salary is between INR 90 LPA and 1.3 Cr - Chief Product Officer (CPO): Defines how AI becomes embedded in the company’s DNA, balancing customer experience, business growth, and responsible innovation. In India, the average salary is between INR 1.3 Cr and 2 Cr+
These values are median salaries from top Indian tech companies and consulting firms, where the specific compensation depends on company size, funding stage, and geography. Especially in the case of product leaders focused on AI, the compensation can be 20 to 30 percent higher than their counterparts with similar experience and seniority level due to the specialized domain expertise.
The Global and Indian Outlook
The global average for AI in product management will move at a compound annual growth rate of 25 percent through 2030, and the average in India is higher than that. KPMG stated that product managers working in AI account for an income boost of 20 to 30 percent over their counterparts. Major tech companies of the world, namely Google, Microsoft, Flipkart, Amazon, Freshworks, Swiggy, are hiring more Product leaders working on AI.
The AI Product Manager position is quickly becoming the new baseline of the position. As companies continue to look for AI in their strategy, they want leaders who can connect cutting-edge technology with genuine customer needs and social responsibility. The future of product management will be defined by those who can guide this balance.
As Harvard Business Review noted, “AI is not replacing product managers, it is redefining what product managers must become.”
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