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Product Management · Hands-on lab · ~4 min read
PRODUCT MANAGEMENT · HANDS-ON LAB

Lab 03 · The PRD-With-AI Review Workflow

Draft a PRD from a synthetic evidence pack using AI — but hand-write the judgment sections yourself. The pack plants two conflicting data points the AI draft will smooth over; your PRD's open-questions section must surface both. Then add an edge-case pass and a probabilistic-requirements annex for the AI sub-feature.

Priya is a Senior PM at a Chennai SaaS company whose product handles invoice workflows for mid-market finance teams. Next quarter's committed feature: auto-escalation for stuck approvals, with an AI sub-feature that suggests the right escalation approver. She has an evidence pack from discovery. Her last AI-drafted PRD demoed well and shipped wrong because the draft's confidence papered over the evidence's contradictions — this time the workflow is different: AI drafts the structure, Priya owns the judgment, and every conflict in the evidence gets surfaced instead of smoothed.

You will need

  • A chat AIfree ChatGPT, Claude, or Gemini.
  • A doc for the PRD and a separate scratch section for your judgment notes.
  • Timeabout 90 minutes.
  • No real datathe evidence pack below is synthetic and obviously fictional.

The evidence pack

Three documents, condensed. Paste-ready.

DOC 1 — DISCOVERY SYNTHESIS (8 interviews, AP clerks + approvers)
- Clerks say invoices "disappear into approval limbo"; no visibility on
  who is sitting on what. Top request: escalation when nothing moves.
- Approvers (4 of 4 interviewed) say they clear their queue "same day,
  next day at worst" and blame delays on invoices reaching the wrong
  approver in the first place.
- 3 of 8 participants asked for delegate-while-on-leave functionality.
- Nobody asked for AI. Two participants said misrouted invoices are the
  root cause: "it goes to whoever the PO template names, even if they
  left the company."
DOC 2 — METRICS SNAPSHOT (last 90 days, all tenants)
- Invoices entering approval: 148,200
- Median time-to-approve: 3.4 days;  p90: 11 days
- Invoices reassigned at least once: 19%
- Invoices auto-matched to PO without human touch: 62%
- Support tickets tagged "approval delay": 214 (up 40% QoQ)
- Approver median queue size at any moment: 14 invoices
DOC 3 — CONSTRAINTS MEMO (from Eng lead + Finance Ops)
- One backend engineer plus one frontend for this quarter. No new
  services; must run on the existing rules engine.
- Finance Ops: "auto-match is barely 40% for our biggest three tenants
  — their PO formats break the matcher. Any escalation logic that
  assumes clean PO data will misfire for exactly the accounts that
  complain loudest."
- Compliance: escalation must never skip the amount-based approval
  matrix. Audit log required for every reassignment.
- AI suggestions allowed only if a human confirms; no auto-reassign.

Steps

  1. Read the pack and write your judgment notes first — no AI yet. Fifteen minutes. Answer in your own words: what problem is actually worth solving, what evidence conflicts with what, and what would you not build. Two data points in this pack cannot both be true as stated — find at least one now, before the AI's fluency makes everything seem consistent.

  2. Generate the skeleton draft. Paste all three docs with: "Draft a PRD for auto-escalation of stuck invoice approvals with an AI-suggested-approver sub-feature. Sections: problem statement, evidence summary, user stories, requirements, out of scope, risks, open questions. Use only the evidence provided. Where the evidence conflicts, say so explicitly instead of reconciling it." That last sentence rarely fully works — which is the point of the next step.

  3. Audit the draft's evidence summary against the pack. Line by line: does the draft state the approver-behavior story and the latency numbers as one coherent narrative? Does it quote one auto-match rate or both? Mark every place the draft asserted consistency the pack does not contain. AIs reconcile by default — smooth prose over conflicting numbers is the failure mode you are hunting.

  4. Hand-write the judgment sections. Rewrite these yourself, using the draft only as scaffolding: the problem statement (what you decided the real problem is — misrouting vs. slow approvers is a decision, not a summary), prioritization of requirements against the two-engineer constraint, and the open-questions section. Every evidence conflict you found goes into open questions with the exact numbers or quotes on both sides, plus how you would resolve it (data pull, follow-up interview, per-tenant analysis).

  5. Run the AI edge-case pass. Prompt: "List 15 edge cases and failure scenarios for this PRD: approver on leave, approver left company, amount-matrix conflicts, circular escalations, tenant with broken PO matching, and any others." Triage its list yourself into: must-handle (add to requirements), explicitly out-of-scope (write it down), and ignore (with a reason). Do not paste all fifteen into the PRD — undigested AI edge-case lists are how PRDs bloat.

  6. Write the probabilistic-requirements annex for the AI sub-feature. Hand-write this — it is the section AI writes worst. It must contain: the suggestion-acceptance target that gates launch (e.g., "suggested approver accepted without change in ≥70% of cases on the eval set"), what happens on low confidence (fall back to showing the rules-engine default with no AI suggestion), the wrong-suggestion cost analysis (a wrong suggestion a human confirms still violates the audit expectation — say how the UI makes the matrix constraint visible), and what gets logged per suggestion for later error analysis.

  7. Red-team your own PRD. Prompt: "You are a skeptical engineering lead with one backend engineer. Attack this PRD: what is underspecified, what contradicts the constraints memo, what will you be asked to build that the evidence does not justify?" Accept or rebut each attack in a margin note. Keep the two best attacks in the PRD's risks section.

  8. Write the retrospective. Ten lines at the end of your doc: which sections AI genuinely wrote, which you rewrote and why, which conflict AI smoothed over and how you caught it, and the one prompt you would reuse. Honest accounting — this is the workflow you are actually training.

Remember:

The AI drafts structure and coverage; the PM owns the problem statement, the priorities, the open questions, and every number — those are exactly the sections a smooth draft tempts you to skip.

Verify your work

A complete lab has all of the following:

  • Judgment notes written before any AI call, with at least one evidence conflict spotted unaided.
  • A PRD whose open-questions section names both planted conflicts with numbers/quotes from both sides and a resolution plan for each.
  • A hand-written problem statement that takes a position (and says what it is not solving).
  • An edge-case section showing triage — must-handle vs. out-of-scope vs. ignored-with-reason — not a pasted list.
  • A probabilistic annex with an acceptance threshold, a low-confidence fallback UX, and per-suggestion logging.
  • The ten-line retrospective.
▸Answer key — the two planted conflicts and the annex baroptional deep dive — click to expand

Planted conflict 1 — approvers' story vs. the metrics. Doc 1: all four approvers say they clear queues "same day, next day at worst." Doc 2: median time-to-approve is 3.4 days, p90 11 days, with a median standing queue of 14. Both cannot be true as a single story. The productive resolution hypothesis is in the pack itself: 19% of invoices are reassigned at least once and participants blame misrouting — invoices may sit unassigned or wrongly assigned, not slowly approved. A strong open question: "Is latency dominated by time-to-right-approver rather than time-in-queue? Pull the split of 3.4 days between routing and approval." A PRD that says "approvals are slow, so escalate" swoothed over the conflict and may target the wrong mechanism.

Planted conflict 2 — the auto-match rate. Doc 2 says 62% auto-matched across all tenants; Doc 3 (Finance Ops) says "barely 40%" for the three biggest tenants. These are reconcilable (aggregate vs. largest tenants) but materially conflicting for design: escalation logic assuming clean PO data misfires precisely for the loudest accounts. The open question must name both numbers and demand per-tenant auto-match distribution before the routing logic is finalized. A draft quoting only 62% inherited the metric snapshot's blind spot.

What the AI draft typically does. States "approvals take 3.4 days on average" and separately "approvers report fast turnaround" without flagging the tension; quotes 62% and drops the 40% because it appears in a memo, not a metrics table. Finding either behavior in your step-3 audit counts as a catch.

Annex grading bar. Full marks requires a numeric acceptance threshold tied to an eval set (not "high accuracy"), a defined no-suggestion fallback (rules-engine default shown, AI silent), explicit statement that suggestions never bypass the amount matrix and how the UI shows this, and a logging spec (input features, suggestion, confidence, human action) — because Lab 07's error analysis depends on exactly this logging discipline existing.

Grading yourself. Both conflicts surfaced with numbers + credible annex: excellent. One conflict: re-read the doc pair you missed and note which audit question would have caught it. Zero: you shipped the smooth draft — rerun step 3 comparing every number that appears in more than one doc.

Key Takeaway:

Evidence packs contradict themselves; AI drafts do not. The PM's job in an AI-drafted PRD is to reintroduce the contradictions as open questions with numbers on both sides — and to hand-write the probabilistic annex no model writes credibly.

This is the free reading view. Open BXUP to track your progress, run the hands-on labs, and prove it with original, exam-pattern assessments.
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