Why PM Teams Are Shrinking (and What It Means for Those Who Remain)

Product management teams are getting smaller—but not because companies suddenly need fewer products or less oversight. The reason is simpler, and potentially more concerning: AI is transforming the PM role faster than anyone anticipated.

Our recent research at Perspective AI, involving 54 PMs from industry leaders like Microsoft, LinkedIn, Adobe, and DocuSign, uncovered a surprising insight:

“PM workforce reductions are already happening, even as engineering teams remain stable.”

What's behind this shift, and what does it mean for PMs still in the game?

The New Reality: AI as a Force Multiplier

AI isn't just improving efficiency—it's fundamentally removing entire categories of PM tasks. Typical PM duties such as:

Writing detailed product specifications
Conducting repetitive data analysis
Preparing and distributing regular status updates
Coordinating and tracking tactical project work

are increasingly being automated.

A Senior PM at Microsoft explained:

"I used to spend hours every week tracking deliverables, collecting updates, and aligning teams. Now, AI systems do most of that. I'm expected to spend my time on higher-value strategic tasks."

Initially, this seems great—less drudgery and more interesting work—but the reality is more complex.

Efficiency Comes at a Cost

The efficiency gains AI brings mean that fewer PMs can handle more work. As AI absorbs routine tasks, companies are consolidating responsibilities, expecting individual PMs to take on broader strategic roles. This shift isn’t just a job redefinition—it's a heightened expectation to deliver at a much higher strategic level.

Simply put, the "busywork safety net" many PMs relied on is gone. What’s left requires deeper insight, sharper judgment, and higher accountability.

In short: The stakes are rising significantly.

Navigating the New PM Landscape

If you're a PM navigating this changing landscape—or hoping to secure your role in the coming years—here are critical strategies for thriving in the AI-driven era:

1. Move Up the Value Chain

Emphasize strategic thinking, long-term vision, and market insight. Shift your daily focus from operational details to bigger-picture questions:

Where is the market headed?
How does our product fit strategically into our company’s vision?
What unmet customer needs could we uniquely fulfill?

2. Become an AI Orchestrator

Embrace AI as an essential junior member of your team:

Learn to delegate effectively, clearly define the tasks you assign to AI.
Monitor AI-generated results critically, verifying their accuracy and quality.
Develop strong prompting and iterative skills to refine AI outputs.

3. Cultivate and Demonstrate “Taste”

Aesthetic and intuitive judgment (“taste”) is a trait AI still cannot replicate:

Learn to articulate clearly why one product solution "feels right" while another doesn't.
Build confidence around your intuition by regularly grounding it in user data, market insights, and design best practices.
Champion a product philosophy that prioritizes user delight and satisfaction over pure analytical decisions.

4. Prioritize Empathy and Human Connection

Human nuance is more critical than ever. Your ability to deeply understand users, read between the lines, and manage nuanced relationships within your organization becomes your primary differentiator:

Invest time in deepening user and stakeholder relationships.
Cultivate active listening, thoughtful communication, and emotional intelligence.
Advocate for user needs and nuanced understanding during product decisions, demonstrating why your perspective adds irreplaceable value.

The Bottom Line: Survival of the Strategically Fittest

PM roles aren't disappearing outright—but the traditional, tactically focused PM role is rapidly becoming obsolete. Teams are shrinking because routine, operational tasks no longer justify human investment at scale.

The PMs who remain will increasingly become indispensable strategists, AI orchestrators, and curators of human-centric product experiences. The PM of tomorrow isn’t merely managing tasks but shaping strategic outcomes, deeply understanding human needs, and directing powerful AI-driven insights to amplify their impact.

This future belongs to PMs who evolve swiftly, decisively, and strategically. The traditional generalist is fading away—the strategically focused, irreplaceable specialist is rising.

Curious to dig deeper into how AI is reshaping product management? Read the full report ↗︎