The science of product, big bets, and how AI is impacting the future of music | Gustav Söderström

The science of product, big bets, and how AI is impacting the future of music | Gustav Söderström

Lenny's PodcastMay 21, 20231h 24m

Gustav Söderström (guest), Lenny Rachitsky (host), Narrator

Evolution from curation → recommendation → generative AI, and implications for productSpotify’s AI strategy, including the AI DJ and generative use casesFuture of music and creativity in an AI-generated world, plus rights/business modelsOrganizational design: beyond squads, autonomy at the VP level, centralization vs. decentralizationBig bets and redesigns: Spotify’s new home feed, discovery vs. recall, and dealing with backlashProduct principles: fault-tolerant UIs, “magic trick” products, and data-driven decision-makingCulture, leadership, and communication: internal podcasts, planning cadence, and explaining strategy

In this episode of Lenny's Podcast, featuring Gustav Söderström and Lenny Rachitsky, The science of product, big bets, and how AI is impacting the future of music | Gustav Söderström explores spotify’s Gustav Söderström on AI, big bets, and product orgs Gustav Söderström, Spotify’s co-president, CPO, and CTO, discusses how the internet has evolved from curation to recommendation and now to AI-driven generation, and what that means for product strategy and UX. He shares Spotify’s approach to AI (including the AI DJ), how they structure product and engineering teams after moving beyond the famous “squads” model, and how they think about big, risky bets like their controversial home feed redesign. Gustav also explores the future of AI-generated music, the need for products to feel like “magic,” and the organizational tradeoffs between speed, autonomy, and coherence. Throughout, he emphasizes fault-tolerant interfaces, scientific A/B testing, clear strategy ownership at the VP level, and a culture of explaining decisions with rigor rather than relying on “magic.”

Spotify’s Gustav Söderström on AI, big bets, and product orgs

Gustav Söderström, Spotify’s co-president, CPO, and CTO, discusses how the internet has evolved from curation to recommendation and now to AI-driven generation, and what that means for product strategy and UX. He shares Spotify’s approach to AI (including the AI DJ), how they structure product and engineering teams after moving beyond the famous “squads” model, and how they think about big, risky bets like their controversial home feed redesign. Gustav also explores the future of AI-generated music, the need for products to feel like “magic,” and the organizational tradeoffs between speed, autonomy, and coherence. Throughout, he emphasizes fault-tolerant interfaces, scientific A/B testing, clear strategy ownership at the VP level, and a culture of explaining decisions with rigor rather than relying on “magic.”

Key Takeaways

Treat generative AI as a new paradigm, not just “better recommendations.”

Gustav frames the internet’s evolution as curation → recommendation → generation, arguing that generative AI is qualitatively different from past ML and will eventually force teams to rethink product experiences, interfaces, and even business models from first principles.

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Design fault-tolerant UIs that match your model’s real performance.

You must understand hit rates and error patterns to design the right interface—e. ...

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Aim for “magic trick” moments by scoping and tuning until it feels impossible.

Products that go viral often do one thing so surprisingly well that users can’t see how it’s done (e. ...

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Place real autonomy at the VP layer to balance speed and alignment.

Spotify learned that putting autonomy at the squad level produced “100 strategies from 100 squads,” and putting it at the CEO level bottlenecks decisions; instead, VPs (e. ...

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Separate discovery from recall and design explicitly for each use case.

Users use Spotify’s home mostly (≈90%) for recall (getting back to known content) rather than discovery; pushing a TikTok-style discovery feed onto home broke recall, teaching Spotify to keep recall dense and predictable while making discovery powerful but optional and well-signposted.

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Use A/B testing and willingness to change your mind to navigate big bets.

Gustav stresses being “100% committed until the data says no, then 100% committed to the new thing,” recognizing that redesigns are painful, costly, and provoke backlash—but must still be evaluated scientifically rather than defended emotionally.

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Think of AI as a new instrument for creators, not a replacement.

AI-generated music will likely spawn new types of creators and genres (as DAWs did for EDM), while most “real” artists will use AI as part of their process; the bigger long-term questions are legal/rights models and how to ensure artists are fairly compensated.

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Notable Quotes

We’re going from curation to recommendation to generation, and I suspect it will be as big of a shift that you will eventually have to rethink your products.

Gustav Söderström

Don’t think of this as just more of the same machine learning. The recommendation era was one type of machine learning. The generation era is a different type.

Gustav Söderström

If you’re renting all of this expensive brainpower and then you give them no room to think for themselves, that doesn’t sound smart.

Gustav Söderström

You have to believe in things 100% until the data says no, and then you believe in something else 100%. That sounds easy. It’s very hard to do.

Gustav Söderström

We don’t promise everyone that they have to agree, but even if they don’t agree, they should be entitled to understand why you’re making the decision.

Gustav Söderström

Questions Answered in This Episode

How should product teams systematically identify which parts of their experience need a complete generative-AI rethink versus incremental ML improvements?

Gustav Söderström, Spotify’s co-president, CPO, and CTO, discusses how the internet has evolved from curation to recommendation and now to AI-driven generation, and what that means for product strategy and UX. ...

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What concrete metrics and methods best distinguish “users angry because habits changed” from “users angry because the new design is objectively worse” during a major redesign?

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How can smaller companies, without Spotify’s scale or VP bench, practically adopt the “autonomy at the VP level” model Gustav describes?

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What new business and rights models does Gustav imagine will fairly compensate artists in a world where AI can generate music in their style?

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Outside of audio, where does Gustav see the next big ‘AI DJ–style’ product opportunity—something that simply couldn’t have existed before generative AI?

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Transcript Preview

Gustav Söderström

The internet sort of started with curation, often user curation. So you, you, you took something, some good, like people or books or music, and you digitized it and you put it online, and then you asked users to curate it. And that was Facebook, Spotify, and so forth. And then after a while, the world switched from curation to recommendation, where instead of people doing that work, you had algorithms. And that was a big change that required us and others to actually rethink the entire user experience, and, and sometimes the, the business model as well. And I think we're entering now is we're going from your curation to recommendation to generation. And I suspect it will be as big of a shift that you will eventually have to rethink your products. We have to rethink the user interface and the experience for recommendation first era. And so what, what does that mean in the generative era? No, no one really knows yet.

Lenny Rachitsky

(instrumental music) Welcome to Lenny's Podcast, where I interview world-class product leaders and growth experts to learn from their hard-won experiences building and growing today's most successful products. Today my guest is Gustavs Soderstrom. Gustavs is a product legend, and he's now the co-president, chief product, and chief technology officer at Spotify, where he's responsible for Spotify's global product and technology strategy, and oversees the product, design, data, and engineering teams at the company. I've had Gustavs on my wish list of dream guests to have on this podcast since the day I launched the podcast. And I'm so happy we made it happen. In our conversation, we dig into what Gustavs has learned about taking big bets and what to do when they don't work out, how Spotify moved away from squads and how they structure their teams now, how AI is already impacting their product, and also the future of music generated by AI, also why all great products need to pull some kind of magic trick, how accurately Succession represents Swedish business culture, and his hilarious analogy of peeing in your pants. Enjoy this episode with Gustavs Soderstrom after a short word from our sponsors. This episode is brought to you by Microsoft Clarity, a free, easy-to-use tool that captures how real people are actually using your site. You can watch live session replays to discover where users are breezing through your flow and where they struggle. You can view instant heat maps to see what parts of your page users are engaging with, and what content they're ignoring. You can also pinpoint what's bothering your users with really cool frustration metrics like rage clicks, and dead clicks, and much more. If you listen to this podcast, you know how often we talk about the importance of knowing your users. And by seeing how users truly experience your product, you can identify product opportunities, conversion wins, and find big gaps between how you imagine people using your product and how they actually use it. Microsoft Clarity makes it all possible with a simple yet incredibly powerful set of features. You'll be blown away by how easy Clarity is to use. And it's completely free forever. You'll never run into traffic limits or be forced to upgrade to a paid version. It also works across both apps and websites. Stop guessing, get Clarity. Check out Clarity at clarity.microsoft.com. This episode is brought to you by Eppo. Eppo is a next generation A/B testing platform built by Airbnb alums for modern growth teams. Companies like DraftKings, Zapier, ClickUp, Twitch, and Cameo rely on Eppo to power their experiments. Wherever you work, running experiments is increasingly essential. But there are no commercial tools that integrate with a modern growth team stack. This leads to wasted time building internal tools, or trying to run your own experiments through a clunky marketing tool. When I was at Airbnb, one of the things that I loved most about working there was our experimentation platform, where I was able to slice and dice data by device types, country, user stage. Eppo does all that and more, delivering results quickly, avoiding annoying prolonged analytic cycles, and helping you easily get to the root cause of any issue you discover. Eppo lets you go beyond basic click-through metrics, and instead use your North Star metrics like activation, retention, subscription, and payments. Eppo supports tests on front end, on back end, email marketing, even machine learning claims. Check out Eppo at geteppo.com. That's geteppo.com and 10X your experiment velocity. (instrumental music) Gustavs, welcome to the podcast.

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