Udi Menkes
Udi Menkes is a product thinker and commentator on branding and AI product dynamics. Here he argues that products now have two customers, complicating a brand model.
Key Highlights
- Udi Menkes argues that AI-era products increasingly have two customers: the human user and the AI or agent that may select tools on the user’s behalf.
- He emphasizes structured continuous discovery, warning that faster AI-assisted building only creates more unwanted products if teams do not deeply understand customer problems.
- He coined the “Reverse Information Paradox” to describe how companies reveal valuable prompts, corrections, evals, and workflows when using AI systems.
- His CEO-Bench project explores how autonomous agents perform when running a startup under delayed, noisy business feedback.
- He highlights practical AI product patterns such as resolver-based context routing and grounding finance AI in real entity-action-result data.
At a glance
- Role
- Product thinker
- Company
- Independent
- X / Twitter
- @UdiMenkes
Overview
Udi Menkes is a product thinker and commentator focused on branding, AI product dynamics, product discovery, and how agentic systems change software design. Across repeated newsletter mentions, he appears as a practical voice for AI Product Managers because he connects abstract AI trends to concrete product questions: how products earn trust, how teams should validate demand, how context should be structured for agents, and how AI changes who the “customer” really is.
His commentary matters to AI PMs because it spans both strategy and execution. Menkes discusses brand positioning in a world where products increasingly serve both humans and AI systems, warns that faster building can worsen poor discovery, and highlights implementation patterns such as grounding finance AI in real decision-outcome data, managing context overload with structured knowledge files, and evaluating autonomous agents in simulation environments like CEO-Bench.
Key Developments
- 2026-05-26 — Menkes shared a lightweight solution to context overload: a 50-line markdown “resolver” that maps each task to the three most relevant “brain” files, reportedly improving AI performance overnight.
- 2026-06-15 — He argued that many B2B AI products fail not because models or data are weak, but because teams optimize for demo-friendly tasks without validating behavior change, budget ownership, or workflow integration.
- 2026-06-17 — He urged product teams to move beyond automating manual tasks and instead design once-impossible “11-star” experiences, echoing Brian Chesky’s ambition-first product framing.
- 2026-06-21 — Menkes created CEO-Bench, a 500-day simulation in which an AI agent runs a virtual $1 million startup, making decisions on pricing, marketing, product, infrastructure, and enterprise sales under delayed and noisy feedback.
- 2026-06-22 — He argued that finance AI should be grounded in real entity-action-result patterns, since human judgment comes from observing decisions and outcomes while language models mainly learn from text.
- 2026-07-13 — He coined the “Reverse Information Paradox,” describing how companies pay AI vendors not just with money but by exposing proprietary prompts, corrections, evals, and workflows.
- 2026-08-02 — Menkes shared AI Engineer’s talk on Intuit’s financial-advice system, highlighting a pipeline based on millions of state-action-outcome trajectories, reinforcement learning, and LLM-generated advice.
- 2026-09-08 — He recapped Amplitude’s Wave, emphasizing an end-to-end production system that detects issues through analytics, opens PRs, deploys approved changes, and measures business results.
- 2026-09-16 — He argued for structured continuous discovery: ask about past behavior, use an opportunity-solution tree, and include engineers in customer interviews. He also warned that as agents make building easier, strong discovery is becoming rarer and therefore more valuable.
- 2026-10-05 — Menkes said every product now has “2 customers,” making his long-used brand model incomplete. His prior model centered on becoming the first name a person reaches for; the update implies products must now win both human preference and machine/agent selection.
Relevance to AI PMs
1. He reframes product strategy for the agent era. Menkes’ “2 customers” idea is directly useful for AI PMs building products that must appeal not only to human buyers and users, but also to copilots, agents, or model-mediated workflows that choose tools on a user’s behalf.
2. He provides a tactical lens for AI discovery. His advice to ask about past behavior, involve engineers in interviews, and use an opportunity-solution tree is highly actionable for PMs trying to avoid shipping impressive AI demos that do not drive adoption or behavior change.
3. He highlights implementation patterns beyond prompting. From resolver-based context routing to grounding finance AI in real outcome data and evaluating autonomous systems in CEO-Bench, Menkes points AI PMs toward product architecture and evaluation choices that materially affect reliability and usefulness.
Related
- brand-model — Closely tied to Menkes’ branding commentary, especially his update that the classic “be the first name people reach for” model is incomplete when products also need to serve AI or agent decision-makers.
- continuous-discovery and opportunity-solution-tree — Core to his product discovery guidance, especially for teams at risk of building faster than they learn.
- context-overload and brain-files — Connected to his resolver approach for improving AI performance by routing tasks to the most relevant knowledge sources.
- b2b-ai-products — Relevant to his argument that many enterprise AI failures are go-to-market and behavior-change failures, not just model failures.
- ceo-bench and ai-agent — Linked to his experimentation with autonomous-agent evaluation in simulated business environments.
- entityactionresult-patterns, finance-ai, and intuit — Reflect his emphasis on grounding financial recommendations in real-world state, action, and outcome data.
- amplitude and wave — Connected through his recap of an AI-driven production loop that identifies problems, ships fixes, and measures impact.
- brian-chesky, airbnb, and 11-star-experiences — Related to his view that AI products should target experiences that were previously impossible rather than merely automate existing tasks.
Frequently asked questions
What is Udi Menkes?
Udi Menkes is a product thinker and commentator on branding and AI product dynamics. Here he argues that products now have two customers, complicating a brand model.
What should AI product managers know about Udi Menkes?
Udi Menkes argues that AI-era products increasingly have two customers: the human user and the AI or agent that may select tools on the user’s behalf. He emphasizes structured continuous discovery, warning that faster AI-assisted building only creates more unwanted products if teams do not deeply understand customer problems. He coined the “Reverse Information Paradox” to describe how companies reveal valuable prompts, corrections, evals, and workflows when using AI systems.
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Newsletter Mentions (32)
“Udi Menkes 🚢 commented that every product now has “2 customers,” making his long-used brand model (becoming the name a person reaches for first) incomplete.”
#12 𝕏 Udi Menkes 🚢 commented that every product now has “2 customers,” making his long-used brand model (becoming the name a person reaches for first) incomplete. Also covered by: @Udi Menkes 🚢 , @Udi Menkes
“Udi Menkes argues that product teams need structured continuous discovery: ask about past behavior, use an opportunity-solution tree, and include engineers in customer interviews. As agents increase building capabilities, he says effective discovery is becoming rarer—and building faster without understanding the problem only produces more products nobody wants.”
#13 in Udi Menkes argues that product teams need structured continuous discovery: ask about past behavior, use an opportunity-solution tree, and include engineers in customer interviews. As agents increase building capabilities, he says effective discovery is becoming rarer—and building faster without understanding the problem only produces more products nobody wants. #14 in Guillermo Rauch announced Vercel Labs, Vercel’s public research and experimentation arm for sharing what the company supports and researches, along with experiments that did not pan out.
“#2 in Udi Menkes recapped Amplitude’s Wave, a production product that identifies issues through analytics, opens PRs, deploys approved changes, and measures results—in one example, opening a PR within 15 minutes.”
#2 in Udi Menkes recapped Amplitude’s Wave, a production product that identifies issues through analytics, opens PRs, deploys approved changes, and measures results—in one example, opening a PR within 15 minutes. Personalization increased suggestion-card engagement by 160% in an A/B test, while other changes raised successful searches from 92% to 98%, onboarding completion from 6% to 9%, and blog sign-ups by about 45 per week.
“𝕏 Udi Menkes 🚢 shared AI Engineer’s video of his talk on Intuit’s financial-advice system, which derives millions of business state–action–outcome trajectories, uses reinforcement learning to select better actions, and trains an LLM to generate advice.”
#1 𝕏 Udi Menkes 🚢 shared AI Engineer’s video of his talk on Intuit’s financial-advice system, which derives millions of business state–action–outcome trajectories, uses reinforcement learning to select better actions, and trains an LLM to generate advice.
“#10 in Udi Menkes coins the “Reverse Information Paradox,” observing that companies using AI pay not only in cash but also by revealing proprietary prompts, corrections, evals and workflows.”
#9 𝕏 Aravind Srinivas warns that restrictive distillation terms and one-way usage data capture centralize economic value with infrastructure owners, not creators. He urges every firm to run its own distributed learning infrastructure to reclaim control of its learning loop. #10 in Udi Menkes coins the “Reverse Information Paradox,” observing that companies using AI pay not only in cash but also by revealing proprietary prompts, corrections, evals and workflows. #11 𝕏 Teresa Torres : Snapbar’s COVID cash crisis and obsolete product line forced “gritty resourcefulness,” driving bold bets on WebRTC and later generative AI + video that now power its AI-native offerings.
“in Udi Menkes argues that while human experts build judgment by observing real decisions and outcomes, today’s language models merely “read” text—so in finance AI must ground its recommendations in actual entity–action–result patterns.”
#9 in Udi Menkes argues that while human experts build judgment by observing real decisions and outcomes, today’s language models merely “read” text—so in finance AI must ground its recommendations in actual entity–action–result patterns.
“Udi Menkes created CEO-Bench, a 500-day simulation that gives an AI Agent a virtual $1 M startup to autonomously set pricing, invest in marketing, improve product and infrastructure, and close enterprise deals under noisy, delayed feedback.”
#5 in Udi Menkes created CEO-Bench, a 500-day simulation that gives an AI Agent a virtual $1 M startup to autonomously set pricing, invest in marketing, improve product and infrastructure, and close enterprise deals under noisy, delayed feedback.
“#24 in Udi Menkes urges product teams to stop asking which manual tasks AI can automate and instead imagine once-impossible “11-star” experiences à la Brian Chesky’s Airbnb exercise.”
#24 in Udi Menkes urges product teams to stop asking which manual tasks AI can automate and instead imagine once-impossible “11-star” experiences à la Brian Chesky’s Airbnb exercise.
“in Udi Menkes argues that B2B AI products often fail not because of model or data issues but because teams chase demo-friendly tasks instead of validating whether customers will change behavior, allocate budget, and integrate the solution.”
#7 in Udi Menkes argues that B2B AI products often fail not because of model or data issues but because teams chase demo-friendly tasks instead of validating whether customers will change behavior, allocate budget, and integrate the solution.
“#7 in Udi Menkes dramatically boosted AI performance by writing a 50-line markdown “resolver” that maps each task to the three most relevant “brain” files, solving context overload overnight.”
#7 in Udi Menkes dramatically boosted AI performance by writing a 50-line markdown “resolver” that maps each task to the three most relevant “brain” files, solving context overload overnight. #8 📝 Simon Willison Microsoft Copilot Cowork Exfiltrates Files - A report describes how Microsoft Copilot Cowork allowed agent-sent emails to leak data via externally rendered images and pre-authenticated OneDrive links, creating a path for prompt-injection exfiltration.
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