The Executive's Dilemma
You don't need to understand how transformers work to make good AI decisions. But you do need enough literacy to ask the right questions and spot the wrong answers.
What You Actually Need to Know
1. The Difference Between AI Types
Understand the distinction between:
- Generative AI (creates content)
- Predictive AI (forecasts outcomes)
- Automation (follows rules)
Different types solve different problems. Mismatching technology to problem is expensive.
2. What AI Can and Cannot Do
AI excels at pattern recognition and content generation at scale. It struggles with novel situations, nuanced judgment, and tasks requiring deep context.
Knowing these boundaries prevents both over-investment and under-investment.
3. The Real Costs
AI costs go beyond software licenses:
- Data preparation and integration
- Change management
- Ongoing monitoring and refinement
- Technical debt from rushed implementations
Budget for the full picture.
4. The Questions to Ask
When evaluating AI proposals, ask:
- What specific business outcome are we measuring?
- How will we know if this succeeds?
- What happens if it fails?
- Who owns this after implementation?
The Bottom Line
Executive AI literacy isn't about technical depth—it's about asking better questions and recognizing incomplete answers. That skill is more valuable than any technical certification.