What is product analytics?
Product analytics measures what people do inside a product: which features they use, where they stop and how often they return.
Typical outputs include funnels, retention curves, cohort comparisons and feature adoption. Its strength is coverage. You can measure every user, not only the ones who write in.
Product analytics isn't business intelligence, which looks at the company. It also isn't customer feedback, which can explain motives that behavior can't.
Why it matters for product builders
Analytics can show that users abandon a step. It can't tell you why, and the reason determines the fix.
What changes in AI-first products
Reading data got faster. Choosing the right events and instrumenting them didn't. Behavior data also became more valuable because systems can process it at scale.