AI Literacy: A Critical Imperative in Future-Proofing Businesses

However, many organizations struggle with understanding the technical aspects of AI and its potential, which hinders their ability to adopt AI effectively. Moreover, because technology advancement is moving so quickly, organizations often lack the internal resources and experts to effectively and responsibly implement new AI-powered products. These gaps in skills, resources and knowledge risk misaligned investments, missed opportunities and failure to keep up with competitors. In a data-driven world, AI literacy is no longer optional — it’s a fundamental business necessity. 

Why AI literacy is important 

AI literacy is not just a technical skill. It's a crucial business competency. It enables organizations to adapt quickly to technological advancements, innovate in their markets and make informed decisions that align with strategic goals. Without a strong understanding of AI, businesses may deploy solutions that don’t meet their needs or fail to recognize areas where AI could create significant value. In essence, AI literacy allows companies to assess, integrate and leverage AI tools in ways that can maximize efficiency, foster growth and avoid costly mistakes. 

Furthermore, as governments around the world introduce more complex regulations over data privacy, fairness and transparency in AI, a lack of AI literacy increases the risk of non-compliance or improper use. Organizations that don't understand AI’s full scope may inadvertently breach regulations, leading to legal risks, fines and reputational damage.

AI literacy in practice 

At its core, AI literacy involves a comprehensive understanding of AI’s capabilities, applications and limitations across an organization. It requires that not only technical experts but also executives, managers and non-technical staff are equipped with the knowledge needed to evaluate AI solutions and understand their implications. This includes grasping foundational concepts in machine learning, data analytics, automation and predictive modeling, while also being aware of the ethical and regulatory issues AI introduces.

AI literacy also means fostering an organizational culture in which both technical and non-technical teams can collaborate effectively. Leaders must be able to assess the business implications of AI, while technical teams should have the communication skills to explain complex AI concepts in ways that align with business strategies. Additionally, everyday users across the organization need to understand how to effectively use the technology in alignment with business objectives and regulatory guidance. This cross-departmental understanding supports strategic and ethical AI use, helping to prevent misalignment between technology and business objectives. 

Risks in the AI skills and knowledge gap

Without AI literacy, organizations can face a range of risks. First, businesses may invest in AI technologies that do not align with their actual needs, leading to wasted resources. For instance, an organization may implement a complex AI solution to automate a process that is not a priority or for which the solution is maladapted, while neglecting areas where automation could have a far more substantial impact. Similarly, without a clear understanding of AI’s potential, companies may overlook simpler, more cost-effective solutions. 

Additionally, businesses that lack AI literacy are poorly positioned to address regulatory challenges. As AI laws and policies become more stringent, organizations without an in-depth understanding of AI may inadvertently violate critical regulations. This could lead to legal repercussions including litigation, fines and reputational damage, all of which may be avoided with a robust understanding of the landscape. 

Organizations that do not prioritize AI literacy also risk falling behind their competitors. Given the speed at which the technology is advancing, businesses that invest in AI education and enable their teams to fully harness its potential are more likely to outpace those that do not. Companies that lack AI literacy may overlook opportunities, struggle to optimize their operations and potentially lose market share to AI-savvy competitors. 

The benefits of AI literacy 

Conversely, businesses that prioritize AI literacy can unlock numerous benefits. First, a knowledgeable workforce can make smarter decisions about AI investments. Employees who understand the potential and limitations of AI technologies are better equipped to assess which solutions will drive business value and which are best avoided. This ensures smarter investments and aligns AI projects with overarching business goals. 

AI literacy also drives innovation. Employees who are familiar with AI concepts can identify opportunities to automate processes, enhance customer experiences, optimize supply chains and discover new business models. As a result, organizations with high levels of AI literacy are more agile and responsive to market changes, positioning themselves for long-term success. 

A workforce that understands AI is also equipped to navigate the ethical and legal complexities surrounding the technology, including issues of fairness, transparency and bias. With knowledgeable teams and strong governance programs, organizations can proactively address these concerns and ensure their AI systems comply with evolving regulations, bolstering them against risks and building trust as ethical players in the AI space. 

Finally, AI literacy promotes stronger collaboration across departments. When both technical and non-technical teams share a common understanding of AI, it becomes easier to align AI initiatives with cross-functional business objectives. 

Bridging the AI knowledge gap 

For businesses just beginning to explore AI or struggling to build AI literacy across their teams, outside experts can provide impactful guidance. With decades of experience in governance, compliance and AI implementation, FTI Technology helps organizations bridge the AI knowledge gap by offering tailored training programs that strengthen literacy across technical and non-technical teams.

FTI Technology’s experts also work closely with clients to assess their current processes, identify opportunities, evaluate regulatory exposure, recommend AI solutions that are best suited to their needs and support all aspects of AI selection and adoption to support implementation of technologies that deliver value. 

AI literacy has become a business imperative. By investing in AI education, companies can unlock new growth opportunities, make smarter decisions, stay ahead of industry trends and mitigate risk. With guidance from experts and attention to bridging the AI knowledge gap, businesses will be empowered to leverage AI effectively and responsibly over the long term. 

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The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.