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Roundtable #7: Spotify, Adobe and Linkedin on How AI Changes The Future of Product & Design | E1097

Every single 20VC episode is recorded with Riverside.FM. It is the one product that I could not live without. Try it today here (https://creators.riverside.fm/20VC) and use the code 20VC for 15% off. ----------------------------------------------- Gustav Söderström is the Co-President, CPO & CTO at Spotify. Gustav has been instrumental in taking Spotify from a 30-person operation in Sweden when he joined to being the global leader of the space. Scott Belsky is Adobe’s Chief Product Officer and Executive Vice President, Creative Cloud. Scott oversees all of product and engineering for Creative Cloud, as well as design for Adobe. Tomer Cohen is the Chief Product Officer @ Linkedin where he is responsible for setting and executing the global product strategy at LinkedIn. ----------------------------------------------- Timestamps: (0:00) Intro (00:50) Panel Introductions (02:20) AI's Role in Evolving Product Development (04:52) Future of UI in the Age of AI (07:51) Managing Uncontrolled AI Outputs in Business (08:55) Innovating UI Through AI Advancements (09:58) Importance of AI Literacy for Designers (14:05) Analyzing Costs in AI Model Adoption (16:41) Moore's Law's Impact on AI Development (18:04) Balancing Data Size and Model Efficiency (19:36) Overcoming Challenges in AI Model Implementation (26:43) Spotify's Approach to Implementing AI (27:34) Adobe's AI Development Strategy (28:31) LinkedIn and AI Model Integration (35:22) Strategies for Rapid Scaling Using AI (49:17) Quick-Fire Round ----------------------------------------------- In Today’s Episode on How AI Changes The Future of Product and Design We Discuss: 1. Why AI Is Now the Product that UI Serves: Why does Gustav believe that AI is now the product? How has the importance of UI changed with the rise of AI? How did TikTok change the product paradigm over the last few years? 2. What Matters More Models or Data: What is more important the size of the model or the amount of data a company has? Will companies use many models at the same time? Why will companies using many models at once create a huge opportunity for startups? Will every company have their own model? What will be the decision-making framework of whether to have your own model or leverage another? How does the rise of AI change how companies approach data acquisition, collection and cleaning? 3. The Workforce Needs to Change with AI: How do product leaders and teams need to change in an AI-first world? What do designers need to do to stay up to date in an AI-first world? What does it mean to be good at prompting? How can people get good at prompting? Why will AI kill companies that charge by the hour? Why will seat pricing die in a world of AI? What will be the business model for AI? 4. Incumbents vs Startups: Who Wins: Do incumbents win in a world of AI or do startups? Why is AI primed for incumbents to win and move fast in a way they could not in prior technology cycles? What are the biggest hurdles and challenges incumbents have to face that startups do not? What are the biggest barriers that startups have to win in a world of AI that incumbents do not have? ----------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Gustav Söderström on Twitter: https://twitter.com/GustavS Follow Scott Belsky on Twitter: https://twitter.com/scottbelsky Follow Tomer Cohen on Twitter: https://twitter.com/cohentomer Follow 20VC on Instagram: https://www.instagram.com/20vchq Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ----------------------------------------------- #VentureCapital #GustavSöderström #spotify #ScottBelsky #Adobe #TomerCohen #linkedin #harrystebbings

Harry StebbingshostScott BelskyguestTomer CohenguestGustav SöderströmguestGuest (brief laughter only)guest
Dec 19, 202355mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Spotify, Adobe, LinkedIn Reveal How AI Redefines Product, Design, Strategy

  1. Product leaders from Adobe, Spotify, and LinkedIn discuss how AI is shifting product development from UI-centric to AI-centric, where AI becomes the product and UI becomes the signal-capturing interface around it.
  2. They argue that AI-first strategy must come from the CEO down, forcing teams to accept probabilistic, non-deterministic experiences, rethink design, and deeply understand models and data rather than delegating AI to a specialist team.
  3. The conversation explores multi-model architectures, routing and cost optimization, proprietary vs. foundation models, and why owning high-quality, proprietary user data is a durable advantage.
  4. They also examine how AI will disrupt business models (e.g., seat-based SaaS and hourly billing), what skills designers and product managers must build, and why incumbents may be unusually well-positioned in this particular platform shift.

IDEAS WORTH REMEMBERING

5 ideas

Treat AI as the core product, not a feature you delegate.

The leaders argue that AI strategy must be driven from the top and embedded in every product decision; product teams can’t outsource AI thinking to a separate “AI team” if they want to remain relevant.

Designers and PMs must understand models as deeply as users.

Effective AI UX requires knowing capabilities, failure modes, and latency/cost tradeoffs of models (e.g., Midjourney’s tolerant UI design), so teams can shape experiences that match current model performance.

AI shifts experiences from deterministic to probabilistic, demanding new mindsets.

Product leaders must accept they no longer fully control outputs; they set objectives, constraints, and “knobs,” while models generate variable outcomes—sometimes “hallucination” is a feature (e.g., creative tools, discovery).

Multi-model architectures and routing will be a major innovation layer.

Instead of a few mega-models, they foresee many specialized models (some local, some open-source, some proprietary) orchestrated by dispatchers/routers that optimize for relevance and cost, abstracted away from most product teams.

High-quality, proprietary user data and objectives design are critical advantages.

They stress that data is “oxygen” for AI: product leaders should own the definition of algorithm objectives and the design of data collection pipelines, rather than assuming data science will fix poor or missing signals later.

WORDS WORTH SAVING

5 quotes

AI is the product and the UI is there to help the AI.

Gustav Söderström (Spotify)

When you're thinking in an AI-first principled kind of way, you're really unleashing the idea of control. What happens basically in AI is you don't control the experience anymore.

Tomer Cohen (LinkedIn)

Designers and product people need to understand GPT-4 as well as they understand a user.

Gustav Söderström (Spotify)

It's not the technology that makes us successful, it's the user's experience of the technology that makes us successful.

Scott Belsky (Adobe)

Data is literally, according to me, your second most important job. The first is understanding the objective of the algorithm.

Tomer Cohen (LinkedIn)

AI-first product thinking and the shift from UI-as-product to AI-as-productImpact of AI on product development, design practice, and team org structuresMulti-model strategies, routing/dispatch layers, and cost optimizationData quality, data policy, and proprietary user understanding as core assetsBuild vs. buy decisions for models and domain-specific AI capabilitiesEvolving business models in an AI world (seats, hours, value-based pricing)Career implications and required skills for modern product managers and designers

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