What product leaders must do to turn hype into lasting value
The late-1990s internet boom followed a familiar trajectory: explosive hype and a surge of investment followed by a crash that wiped out countless companies. Could Artificial Intelligence (AI) be heading toward a similar “dot-com moment”?
We’re already seeing some concerning trends with AI. Enterprise buyers are pushing back on superficial promises, regulators are circling, and investors are demanding more than potential—they want traction. The window for turning hype into value is narrowing faster than many leaders realize.
Even if there isn’t an AI “bust,” we are likely to see corrections and industry shifts along the way. Some investments will succeed; others will fail. Early AI pioneers may be replaced by newcomers with better technology that delivers improved customer experiences (think Facebook replacing MySpace, or the iPhone replacing BlackBerry).
The internet bust didn’t spell the end of the internet—it marked the turning point that separated speculation from substance. A similar pattern may emerge today. If so, the lessons are clear: AI’s long-term winners will be those who solve real customer problems, create sustainable value, and earn trust.
Hype Isn’t a Strategy—Customer Value Is
Pets.com became famous for its sock puppet ads but ignored viable unit economics and customer pain points. Amazon, on the other hand, invested in logistics, customer experience, and operational rigor. That discipline positioned Amazon to dominate after the crash.
AI companies face a similar temptation: showcase a viral demo or tout massive funding and expect success to follow. But flashy features without a validated market need are fragile. Product Managers (PMs) and Product Marketing Managers (PMMs) are uniquely positioned to steer their organizations away from this trap.
Product Management: Anchoring Innovation in Reality
To translate AI excitement into durable business value, PMs should:
- Validate authentic problems. Spend time with customers and understand their challenges to ensure your AI solution addresses a pain worth paying for.
- Align technology with strategy. Tie every model, feature, or integration to measurable business outcomes and a clear vision.
- Prioritize for impact. Avoid feature creep and focus resources where they will deliver utility, adoption, and competitive differentiation.
- Bridge silos. Facilitate collaboration across engineering, design, sales, and marketing so the whole organization works toward outcomes—not buzz.
PMs who enforce discipline and clarity now will prevent their AI products from becoming costly experiments that vanish in the next downturn.
Product Marketing: Turning Capability Into Adoption
Even the best AI product will fail without clear positioning and effective go-to-market execution. Product marketers must:
- Translate complexity into customer value. Avoid jargon about parameters or models. Frame benefits in terms of efficiency gains, risk reduction, or revenue impact.
- Segment and target smartly. Identify verticals or personas with the most urgent need, and tailor your messaging.
- Build trust proactively. Address ethical, privacy, and bias concerns openly. Demonstrate responsible AI practices to win over cautious buyers.
- Equip the field. Provide sales teams with messaging, proof points, and competitive insights to cut through skepticism.
PMMs ensure your product doesn’t just exist—it’s understood, adopted, and championed by the right audiences.
Avoid Vanity Metrics—Measure What Matters
During the dot-com era, companies celebrated website traffic and ad impressions. Today, some AI teams fixate on demo views, viral social media moments, or high-profile funding rounds. These metrics may feel gratifying but rarely correlate with sustainable growth.
Instead, focus on:
- Retention and engagement – Are users staying and deriving value?
- Customer ROI – Are buyers seeing measurable improvements?
- Revenue per user – Is your business model viable and scalable?
These indicators provide a truer picture of product health and long-term resilience.
Product Leadership Matters
Executives set the tone for how organizations handle hype. If leaders reward speed over substance, teams will chase vanity wins. If they reward validated learning, they’ll build staying power. Strategic patience, especially when everyone else is rushing, becomes a competitive advantage.
Five Takeaways for Product Executives
- Tie AI initiatives to validated customer problems—not just technology demos
- Measure utility, adoption, and revenue—not buzz or follower counts
- Invest in trust-building and transparent practices to address AI skepticism
- Foster cross-functional discipline between product, marketing, engineering, and sales
- Plan for market cycles—position your product to thrive after the shakeout
The PM & PMM Advantage
The dot-com bust didn’t kill the internet—it cleared the way for disciplined, customer-focused companies like Amazon, Salesforce, and Google to reshape entire industries.
Product managers and product marketers have the expertise to lead their companies through this journey. By grounding innovation in customer value, crafting compelling positioning, and executing with discipline, they can ensure their organizations are not just part of today’s AI hype—but among tomorrow’s enduring market leaders.
About the Authors:
Gayatri Natarajan is Senior Vice President (AIR) at Verisk, where she leads global product teams focused on delivering innovative solutions for risk and analytics. With deep expertise in product strategy, customer engagement, and organizational scale, she has driven transformation across complex enterprise environments. Gayatri is a member of the Product Executive Forum run by the Boston Product Management Association (BPMA), and is dedicated to advancing product leadership and fostering collaboration across the product community.
Neil Baron is the Managing Director of Baron Strategic Partners, a consulting firm dedicated to helping organizations accelerate growth by implementing product management and product marketing best practices. He is the founder and leader of the Boston Product Executive Forum. He has written extensively for publications such as Havard Business Review, FastCompany and Sales and Marketing Management.
