6 product discovery skills you need right now

AI agents are writing the code. If you read my most recent blog post, you know what I am referring to: the Waters theory. The theory refers to our observation that from here out, the percentage of code written by AI (not people) will quintuple year over year. And that means a lot of change for our industry.

As AI radically reduces the barrier to entry for manufacturing software, knowing what to build will be crucial to stand out in a flooded market.

Choosing what to build next is a significant responsibility. And since AI-driven software development makes it possible to build ultrafast (and with minimal resources), the choosing has to be better — because AI will only do what you ask it to. Are you sure you are making the right choice?

If the Waters theory proves true (and we believe it will), customer orientation will be what separates successful products from the ones drowned out in the noise. The key to that success will be to ensure the best ideas have the greatest opportunity to emerge.

Finding what customers actually need and will pay for is an imperative, because they are the only ones who will pay for what you build.

Reaching the sweet spot between customer need and business impact is what we all strive to do. But it requires a complex set of skills and activities few product teams possess entirely.

I meet frequently with product teams at some of the world's most sophisticated enterprise companies. I also have the opportunity to chat with early-stage startups. The challenges I observe are not so different between the two.

It is not that people are not smart or ambitious. The product people I know are all motivated by the idea of building what customers want. So why is it so difficult to get right? The answer is not simple.

What I have learned is that the challenges are deep-rooted. Upstream activities impact what ideas are able to emerge, let alone be championed. Most teams rely on ineffectual processes that cannot scale at the speed with which AI promises to accelerate software manufacturing.

This should be a wake-up call: Too many product teams say that they know what to build, but privately admit it is often a best guess.

Product discovery will be the great differentiator. Product development as a discipline needs to zero in on product discovery in this next phase of the software revolution. And teams need to significantly grow their skills in this area to avoid creating more software waste.

We are trying to improve ourselves. And we are supporting that skill growth in a variety of ways, especially with our most recent launch. Aha! Discovery helps product and user research teams jump-start customer interviews and uncover fresh insights. Even better, you can seamlessly link research and insights to your roadmap. This gives you the validation you need when some pessimistic executive asks you, "Why should we invest in that initiative?" or, "Why should we build that?"

The way I see it, there will be no wiggle room for guesses. Product folks need to have real conviction about the choices we make, which requires deep skill in the following areas:

• Market assessment: Do you have a solid understanding of the playing field?

• Competitive position: Can you identify where you fit within that playing field?

• Strategy: Do you have a differentiated approach to winning?

• Product usage data: Do you have a basic understanding of what parts of your application people use most?

• User feedback: Do you capture what people actually think when they use your product?

• Customer interviews: Can you dig deep and uncover real insights through conversation?

The AI agents are waiting for instructions and will do exactly what you ask — so you better do your homework upfront.

Orchestration between people and AI will enable us to build products faster than ever. But that collaboration will only be worthwhile if you operate from a place of true customer orientation. There is no time to waste and an even narrower margin for error.

There is a lot more to say on this topic. I hope you will join me on April 3, 2025, for a live event to discuss the utmost importance of knowing what to build.