How AI and Digital Transformation Are Reshaping Product Management for Enterprises
In today’s fast-paced digital landscape, enterprises are leveraging advanced software solutions like Product Experience Management (PXM) and Product Lifecycle Management (PLM) to digitally transform their product processes. According to new research from Information Services Group (ISG), a global technology research and advisory firm, traditional Product Information Management (PIM) systems are evolving into AI-powered PXM platforms within the next two years. This shift aims to optimize product experiences and intelligence at every customer touchpoint, driving better outcomes for businesses.
The ISG Buyers Guides™ for Products, produced by ISG Software Research, highlight this transformation. For decades, companies have relied on PIM systems to standardize product information for customers and business partners. However, as consumer expectations rise and digital channels multiply, PIM systems are adapting to support a broader range of product experiences. By 2027, the PIM category is expected to fully transition into PXM, reflecting the growing enterprise demand for enhanced intelligence and superior customer experiences throughout the product lifecycle.
Why Digital Re-Engineering Is Essential for Modern Enterprises
Mark Smith, partner and chief software analyst at ISG Software Research, emphasizes the importance of re-engineering product processes with modern software: “Achieving the best possible outcomes from product investments requires the digital re-engineering of product processes and the use of modern software.” This research empowers enterprises to assess and select the right product management tools to stay competitive in an increasingly complex market.
Many organizations currently face significant challenges in managing product data. Most companies rely on multiple sources—often more than five—to integrate and manage product information. Many still depend on manual processes and outdated methods like spreadsheets, which can lead to inefficiencies and unreliable product records. The growing diversity of products and services exacerbates these issues, making it critical for businesses to adopt intelligent systems powered by AI, machine learning, and analytics.
The Rise of AI-Driven Product Experience Management (PXM)
Retailers, in particular, face unique challenges when it comes to product data management. Many retailers use incompatible tools and lack a centralized repository for product information, resulting in inefficiencies. PXM software addresses these pain points by streamlining data management and enhancing product experiences. However, maximizing the benefits of PXM also requires organizations to improve their internal processes and data quality.
Advancements in agentic AI—technology that enables machines to interact seamlessly with workers and consumers through workflows—are further accelerating this shift. These innovations are helping companies create more dynamic, personalized experiences for their customers. Additionally, product intelligence software is evolving with AI and machine learning, enabling predictive analytics that provide deeper insights into consumer behavior and interactions across multiple digital channels.
The Growing Importance of Product Lifecycle Management (PLM)
As products become more complex and lifecycles shorten, PLM software has become indispensable. Enterprises need PLM solutions that facilitate collaboration, adapt to new technologies, safeguard vast amounts of data, and simplify regulatory compliance. With product experience playing an increasingly vital role throughout the product lifecycle, ISG predicts that one-quarter of PIM and PXM providers will integrate their offerings with PLM systems by 2028.
Key Findings from the 2025 ISG Buyers Guides for Products
For its 2025 Buyers Guides, ISG evaluated 51 software providers across six categories: Product Experience Management, Product Experience Management for Retail, Product Information Management Platform, Product Information Management for Manufacturing, Product Intelligence, and Product Lifecycle Management. Providers were assessed on seven evaluation categories: usability, manageability, reliability, capability, adaptability, validation, and total cost of ownership/return on investment (TCO/ROI).
Here are the top performers in each category:
- Product Experience Management: Informatica earned the highest overall rating, followed by Akeneo and Salsify. Informatica was named a Leader in all seven performance categories.
- Product Experience Management for Retail: Akeneo ranked first, closely followed by Salsify and inriver.
- Product Information Management Platform: Informatica led the pack, with Akeneo and inriver tied for second place.
- Product Information Management for Manufacturing: Informatica, Akeneo, and Salsify took the top three spots.
- Product Intelligence: Pendo emerged as the leader, followed by Amplitude and Quantum Metric.
- Product Lifecycle Management: SAP ranked highest, designated as a Leader in all seven categories. Oracle and Siemens rounded out the top three.
The Future of Product Management in the Age of AI
As Robert Kugel, executive director of Business Research at ISG Software Research, notes, “The pace and complexity of every part of product management are increasing with the evolution of digital systems.” With advancements in AI and other technologies, software providers must continue innovating to help clients remain competitive.
The ISG Buyers Guides™ for Products represent over a year of comprehensive market and product research. Conducted independently without sponsorship or influence from software providers, these reports aim to help enterprises optimize their business and IT software investments. To learn more about the findings and access detailed provider rankings, visit the ISG website or contact ISG Software Research directly.
By embracing AI-driven PXM and PLM solutions, enterprises can unlock new levels of efficiency, intelligence, and customer satisfaction. As the digital transformation of product management accelerates, staying ahead of the curve will be essential for long-term success.
About ISG Software Research
ISG Software Research provides authoritative coverage and analysis of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its ISG Buyers Guides™ help enterprises evaluate and select software providers through tailored assessments powered by ISG’s proprietary methodology. Visit research.isg-one.com for more information and to sign up for free community membership.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
