
How AI agents and workflows change how we should organize product development teams to be more ambitious
Ten years ago, I worked with lots of "fully staffed" product teams: 4-6 engineers, dedicated QA, scrum masters, product owners, AND product managers. Teams of 8-10+ people coordinating constantly.
Now? I believe we can be much more ambitious on similar budgets by changing the default team structure entirely.
My recommendation for companies who can budget to "fully staff": small teams built around a core of 3 engineers, all managing AI agents.
Here's my ideal engineer composition:
This isn't about replacing humans with AI. It's about redirecting their effort to make more progress.
3 engineers with the right agents and workflows can deliver more value than yesterday's team of 6.
And then you can make another similarly effective team with the other 3!
Why this works:
AI is an amplifier of both good and bad - so good tools, workflows, and clear measurable goals have the most direct impact.
But there's a non-obvious advantage that's critically important: smaller teams have much lower coordination costs. It's easier to maintain alignment and shared understanding of a focus area with ~5 people vs. ~10.
Critical success factors:
Big picture:
In 20 years building software products, I've never worked for a company with enough development capacity to match its ambition. But this model can get you closer.
Managing multiple teams brings its own challenges. Team Topologies is my go-to framework here. You'll need platform teams as the number of product teams multiply.
And yes, you'll invest meaningfully in AI tooling.
But the return? You can finally get closer to matching your ambition with your capacity.
The question for you: How are you organizing teams now that managing AI agents effectively is as crucial as managing people?
Get More Like This
Follow along as I build and share what I learn
Found this helpful? Share it with your network!