Insights from 550 product and technology leaders
Product leaders had their fun with AI. Now the real work begins.
The most extensive study on AI in product development confirms what many product leaders are already feeling: pressure to prove ROI is rising, the gap between strategy and delivery is widening, and governance requirements are slowing progress in unexpected ways. Get your copy of the report and access insights on:
✔️ The real levers behind AI ROI
✔️ AI maturity gap product leaders underestimate
✔️ How AI is widening product strategy/delivery divide
✔️ How governance is quietly slowing AI adoption
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It’s a reality check grounded in:
- What leaders say is working
- What teams actually experience
- Where perception and execution diverge
of product leaders feel the pressure to prove ROI on AI initiatives is increasing.
of product leaders report that their organization has adopted AI in the product development process.
of product leaders say unexpected governance issues have slowed their AI deployment.
Pressure to prove ROI is increasing and that’s a good thing
Growing pressure to prove ROI is pushing teams to anchor AI initiatives in measurable outcomes rather than rushed implementations, though that pressure is unevenly distributed: 40% of executives describe it as significant compared to 19% of managers, even as 72% of managers report that ROI expectations are moderately increasing.
“Boards and investors aren’t asking how many releases you did this quarter, they’re asking what it delivered.”
— Sharon Lynch, Chief Executive Officer at Modus Create
Many leaders overestimate their AI maturity
While 84% of decision-makers say AI is fully or partially integrated across the product development lifecycle, a gap between perception and reality remains: only 28% use AI for prototyping, 38% for coding features, and 49% for customer research — foundational applications that are still absent in many teams claiming AI readiness.
“Vibe coding is like one big party. You move fast, everyone’s buzzing, and something flashy gets built overnight. But when the lights come on, there are half-empty cups, a broken chandelier, and the cleanup sucks."
— Kevin McClelland, Chief Growth Officer at Modus Create
Leaner doesn’t mean fewer people
Product teams are becoming leaner either by reducing headcount while maintaining performance or, more commonly, by increasing talent density to accomplish significantly more.
Today, 53% are re-skilling developers to use AI tools and 44% are consolidating roles into AI-augmented generalists; meanwhile, 43% plan to hire more data scientists and ML engineers, and only 30% intend to reduce traditional engineering headcount.
“Expertise is what makes AI valuable. Without professionals who understand how to build, govern, and apply AI effectively, outcomes quickly become unreliable, insecure, and full of unintended consequences.”
— Jon Allegre, Chief Customer Officer at Modus Create
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