Modern Illiteracy in Positions
The technology that was to turn the world of photography upside down was in the company’s hands long before anyone else, but its leadership saw in it only a threat to its lucrative traditional film business, so they kept it on the shelf. Nearly four decades later, Kodak declared bankruptcy in 2012. The problem was not with the technology; the company had possessed it before all its competitors. Rather, it lay in the minds of those at the top of the hierarchy who failed to grasp the value of what was in their hands.
Today, we face a similar moment with artificial intelligence. Institutions are racing to purchase tools, subscriptions, and platforms, yet the most critical question remains unanswered: Do the leaders of these organizations understand what they are buying? Do they possess the capacity to think about artificial intelligence, rather than merely talking about it in meetings and conferences?
What is termed “AI Literacy” is no longer an intellectual luxury left to information technology departments; it has become a fundamental leadership competency, akin to financial literacy, which we cannot imagine a chief executive lacking. A leader who does not understand what artificial intelligence can and cannot do will fall into one of two traps: either overestimating its capabilities, thereby wasting resources on flashy but futile projects, or underestimating the technology, as Kodak did, thereby depriving their organization of a historic opportunity that may never recur.
The required literacy does not mean that managers should become programmers or data scientists. Rather, it means possessing a practical understanding that enables them to ask the right questions: What data does this technology require? What are its accuracy limits, and when does it err? What are the ethical and legal risks of its use? Where does it create genuine value in our operations? Major decisions are made at the top of the hierarchy, and if made in ignorance, the entire organization pays the price.
Worse than ignorance, in our view at least, is the “blind delegation” of technology. A leader might, for instance, sign off on an artificial intelligence strategy they do not understand, content with trusting their advisors or vendors. Just as a manager is not absolved of responsibility for a budget they have not read, they will not be absolved tomorrow of responsibility for algorithms that harmed their clients or decisions that cost their organization its reputation.
In light of this reality, there are three steps that admit no delay. First, leaders must invest in educating themselves before their employees, through serious qualification programs rather than superficial workshops. Second, senior management and boards should make AI literacy a criterion in the selection and evaluation of leaders. Third, thinking must shift from the question “How do we add artificial intelligence to what we do?” to a deeper question: “How do we redesign what we do in light of this technology?”
Kodak held the future in its hands, only to bury it with its own hands, because its leadership viewed new technology through the eyes of the past. Today, artificial intelligence poses the same question to our leaders: Will you think about it and reshape your organizations around it, or will you merely watch it reshape the world around you?
Dr. Dhafer Adel Al-Huwail
