How AI is Changing Product-Led Growth

Welcome to Inspired Momentum!

Artificial Intelligence (AI) is no longer just a nice-to-have—it’s a game-changer for Product-Led Growth (PLG).

1. AI helps products adapt to users in real-time, boosting retention.

2. It reduces friction in onboarding and engagement.

3. It automates decision-making, making product optimization faster.

From personalized experiences to AI-driven monetization, let’s explore how AI is shaping the next era of PLG.

5 Ways AI is Transforming PLG

1. AI-Powered Onboarding → Reduce Drop-Offs

   💡 Why? Users churn when onboarding feels slow or complex. AI speeds up activation by guiding users based on behavior.

   📌 Example:

   • Grammarly personalizes onboarding by asking users about writing goals (emails, reports, social media).

   • Notion recommends templates based on user intent.

   ✅ Your Move:

   • Use AI chatbots (Intercom, Drift) for real-time onboarding guidance.

   • Track user drop-off points and dynamically adjust onboarding steps.

2. AI-Powered Engagement → Smart Nudges & Personalization

   💡 Why? Users disengage when they don’t see value. AI predicts when users are losing interest and re-engages them.

   📌 Example:

   • Duolingo’s AI-driven streak reminders keep learners engaged.

   • Spotify’s AI-generated playlists drive higher retention.

   ✅ Your Move:

   • Use behavior-based email automation to re-engage users at the right time.

   • Implement in-app nudges to highlight underused features.

3. AI-Powered Churn Prediction → Save At-Risk Users

   💡 Why? AI detects patterns of disengagement before users churn.

   📌 Example:

   • Zoom tracks inactivity levels and triggers re-engagement emails.

   • Netflix monitors drop-off points and adjusts recommendations accordingly.

   ✅ Your Move:

   • Set up AI-powered churn detection (e.g., users who haven’t logged in for 7+ days).

   • Offer personalized incentives (discounts, feature unlocks) to keep users engaged.

4. AI-Powered Monetization → Smarter Upsells & Pricing

   💡 Why? AI identifies Product-Qualified Leads (PQLs) based on behavior and nudges them toward upgrades.

   📌 Example:

   • Slack detects when free teams hit message limits → prompts them to upgrade.

   • Shopify suggests AI-driven pricing plans based on business size.

   ✅ Your Move:

   • Use AI-powered pricing tools (ProfitWell, Paddle) to optimize conversion rates.

   • Trigger upgrade prompts dynamically based on feature usage.

5. AI-Powered Customer Support → Instant Help, Lower Costs

   💡 Why? AI-powered chatbots reduce friction by answering common user questions instantly.

   📌 Example:

   • Intercom’s AI chatbot resolves 80%+ of user inquiries before human intervention.

   • Gong’s AI analyzes sales calls and suggests improvements.

   ✅ Your Move:

   • Implement an AI chatbot to handle FAQs and onboarding.

   • Use AI-powered search in your help center for faster answers.

Case Study: How Grammarly Used AI to Scale PLG

Grammarly leverages AI at every stage of the user journey.
🔹 Personalized onboarding → Users choose writing goals; AI tailors the experience.
🔹 AI-driven engagement → Grammarly highlights premium-only corrections to nudge upgrades.
🔹 Smart upsells → AI recommends premium plans based on writing behavior.

🎯 The Result?
30M+ daily active users and strong conversion rates from free to paid.

🚀 Your Takeaway: AI enhances onboarding, retention, and monetization—all key drivers of PLG.

Quick Wins to Implement AI in Your PLG Strategy Today

✅ Identify one step of your user journey where AI can reduce friction (onboarding, retention, monetization).
✅ Test AI-powered chatbots for onboarding & support.
✅ Use AI-based churn prediction to re-engage at-risk users.
✅ Implement AI-powered upsell nudges to improve conversion rates.

Let’s Talk!

How are you using AI in your PLG strategy? Reply to this email—I’d love to feature your insights in a future issue!

Until next time,
Filippo

P.S. Know someone exploring AI-driven growth? Share this issue with them! 🚀