520: The future of AI in product management – with Mike Todasco

How product managers are transforming innovation with AI tools Watch on YouTube TLDR In this deep dive into AI’s impact on product innovation and management, former PayPal Senior Director of Innovation Mike Todasco shares insights on how AI tools are revolutionizing product development. From enhancing team brainstorming and prototype development to product iteration, AI is becoming an essential tool for product managers. However, Mike emphasizes the importance of balancing AI capabilities with human oversight, warning against over-reliance on AI. The discussion explores practical applications of AI tools like ChatGPT and Claude in product development, including MVP refinement, customer testing, and marketing content creation. Drawing from his experience building PayPal’s Innovation Labs, Mike also shares valuable insights on creating an innovation culture that empowers all employees to contribute to product innovation, regardless of their role. Key Topics: Building Innovation Culture (PayPal Case Study) AI as a Brainstorming Partner AI Tools in Product Development Product Development Acceleration AI Implementation Cautions Future of AI in Product Development Customer Testing and Validation AI’s Impact on Product Innovation and Management: A New Era for Product Teams In this episode of Product Mastery Now, I’m interviewing Mike Todasco, former Senior Director of Innovation at PayPal and current visiting fellow at the James Silberrad Brown Center for Artificial Intelligence. Mike brings valuable insights about the revolutionary transformation of product development through artificial intelligence. Through our discussion, Mike shares how this dramatic acceleration in product development processes signals a fundamental shift for product teams. Drawing from his experience leading innovation at PayPal and holding over 100 patents, Mike explains how AI tools are creating new opportunities for innovation, faster iteration cycles, and more comprehensive market understanding while maintaining a balance between artificial intelligence and human insight. Building Innovation Culture: Lessons from PayPal’s Innovation Lab In our discussion, Mike shares insights from his experience building PayPal’s Innovation Lab following the company’s separation from eBay in 2015. He explains that their approach to innovation deliberately avoided the common pitfall of creating a two-tiered system where only designated “innovators” were responsible for new ideas. Creating an Inclusive Innovation Environment The foundation of PayPal’s innovation success rested on a culture of trust and autonomy. Mike points to their unlimited vacation policy as a symbol of this trust-based culture, where employees were treated as responsible adults capable of managing their time and contributions. This philosophy extended to how employees could engage with the Innovation Lab, allowing them to pursue innovative projects alongside their regular responsibilities. Traditional Innovation Model PayPal’s Inclusive Approach Designated innovation teams Open to all employees Structured innovation times Flexible engagement Rigid definition of innovation Adaptable interpretation Top-down innovation goals Self-directed innovation Implementation Strategy PayPal deliberately kept the definition of innovation flexible. Rather than imposing a strict interpretation, they allowed different roles to define innovation in ways that made sense for their work. Mike encouraged employees to include innovation in their annual goals but never forced this approach. * Innovation goals were customized to individual roles and responsibilities