Tracks/Track 2 - Product Manager / CPO/2-3
Track 2 - Product Manager / CPO

2-3: AI Feature Economics

Designing, managing, and launching AI-native product features.

3 Lessons~45 minSupports Framework: AI Unit Economics
Sovereign Asset Pipeline TraceResearch → Implementation
1. Research
2. Concept
3. Framework
AI Unit Economics
4. Diagnostic
PDI / APER Engine
5. Implementation

🎯 What You'll Learn

  • ✓ Structure Generative UI
  • ✓ Calculate LLM token margins
  • ✓ Design probabilistic UX
  • ✓ Mitigate hallucination liabilities
Free Preview - Lesson 1
1

Lesson 1: Margin Collapse Warning

If you charge $10/mo for an AI feature, but a power user consumes $15/mo in OpenAI API calls, your margins are inverted. AI PMs must master token economics and rate limiting.

Token Margin Tax

The API cost subtracted from the subscription tier.

Target Gross Margin: > 70%
Hard Caps vs Throttling

Degrading the model (falling back to cheaper models) for heavy users.

Preserves unit economics
AUEB Ratio

Average Unit Economic Boundary. The max API calls before unprofitability.

Must be modeled before launch
📝 Exercise

Model the profitability of your AI feature assuming 5%, 50%, and 99th percentile usage patterns.

2

Lesson 2: Probabilistic UX Design

Standard software is deterministic. AI is probabilistic. PMs must design UI that handles failure gracefully, embraces latency, and sets clear user expectations for hallucinations.

Time-to-First-Token (TTFT)

The speed at which generated content begins streaming.

Target: < 1.5 seconds
Feedback Loops

Thumbs up/down buttons immediately feeding back to fine-tunes.

Required for active RLHF
Graceful Degradation

How the UI reacts when the LLM returns an error or timeout.

Always provide a manual fallback
📝 Exercise

Redesign an AI feature interface to include streaming, explicit feedback buttons, and a fallback state.

3

Lesson 3: RAG vs. Fine-Tuning Strategy

Deciding whether your feature requires Retrieval-Augmented Generation (giving the LLM search results) or Fine-Tuning (teaching the model your tone/format). They solve entirely different problems.

RAG Dominance

Best for fetching facts, real-time data, and proprietary docs.

High latency but highly accurate
Fine-Tuning Role

Best for specific formatting (JSON routing) or brand tone.

Expensive to train, cheap to run
The Hybrid Approach

Using RAG for facts and a cheap fine-tuned router model.

The modern architecture standard
📝 Exercise

Determine whether your next AI feature requires RAG, Fine-tuning, or both. Provide the architectural justification.

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Telemetry Stream
Inference Architecture
01import { orchestrator } from '@exogram/core';
02
03const router = new AgentRouter({);
04strategy: 'COST_EFFICIENT_SLM',
05fallback: 'FRONTIER_MODEL'
06});
07
08await router.guardrail(payload);
+ 340%

Module Syllabus

Lesson 1: Lesson 1: Margin Collapse Warning

If you charge $10/mo for an AI feature, but a power user consumes $15/mo in OpenAI API calls, your margins are inverted. AI PMs must master token economics and rate limiting.

15 MIN

Lesson 2: Lesson 2: Probabilistic UX Design

Standard software is deterministic. AI is probabilistic. PMs must design UI that handles failure gracefully, embraces latency, and sets clear user expectations for hallucinations.

20 MIN

Lesson 3: Lesson 3: RAG vs. Fine-Tuning Strategy

Deciding whether your feature requires Retrieval-Augmented Generation (giving the LLM search results) or Fine-Tuning (teaching the model your tone/format). They solve entirely different problems.

25 MIN
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Want to apply this to your organization with AI Feature Economics?

Run a free diagnostic first. If the numbers concern you, book a session to build a remediation plan.

Richard Ewing: AI Economist & Capital Auditor