Falk Gottlob
Built a $6B healthcare platform. Now helping the next generation of AI-native companies do the same. | Advisor · Board Member · Investor · Product Builder
insightsWharton and GBK Collective published their fourth AI adoption report last week, 1,416 people at large US companies. One table should land on every CPO's desk.
Product and engineering departments use agents about as much as anyone, 62 percent. But only 16 percent have AI built into their core processes, the lowest of every department tested. Eight percent have transformed their workflows. Nineteen percent report strongly positive returns, tied with legal for last.
The team that builds the product is the one where AI shows up least in the work.
Now put that next to the CEO. In BCG's CEO and board survey, CEOs said about a third of their performance review now rides on AI returns. The AI story is the CEO's story, and they're graded on it.
Most CPOs hand them one of two stories. A roadmap of AI features with dates. Or hours saved. Wharton found hours saved is the most common way departments measure AI, and net-new revenue the least. Departments tracking at least one growth measure were nearly three times as likely to report strongly positive returns, 35 percent against 13. Stefano Puntoni put it plainly: what separates the leaders is whether they're changing the business around AI.
So here's the story I think a CPO owes the CEO. Every AI bet in one sentence: the customer outcome it moves, the evidence that it's moving, what it costs per outcome, and what we stopped to fund it. Cost isn't optional anymore. Dev Ittycheria said on Jason Lemkin's 20VC x SaaStr episode that his CIO conversations are about token costs and token budgets.
And if product doesn't supply that story, the CEO buys a seat to tell it. Equilar's Jake Dayton reports median chief AI officer pay at $1.9 million, with 60 percent of them appointed in 2025 or 2026.
What the CEO should hold the CPO to: a growth measure named before each AI bet ships, cost per outcome reported next to the outcome, a straight answer on how product's own work has changed, and one thing killed every quarter. And what to stop asking for: dates on AI features, feature counts, and tool adoption.
Judith Wallenstein at BCG said CEOs need to bring their boards along the same learning journey they took. The CPO is the person who should hand them the material.
This is part 2 of The CPO Transition, a series for chief product officers and the CEOs and boards who hire them. Part 1 was about owning the operating model instead of the roadmap.
One thing to try this week: list every AI bet in flight, and next to each write the measure you'd report to the board. Circle every one that's hours saved, velocity, or adoption. Rewrite each circled line as a customer outcome with a cost per outcome, then walk your CEO through the sheet before the next board prep.