AI image of Snoop with Pikachu on shoulder

AI Literacy Guide for Decision Makers

David Gibson

September 25, 2024

Are you always running at 100% with zero bandwidth? I hear that. I essentially run two businesses. One that builds websites and one that makes sure they are accessible and legally compliant. And this is a small business so I don’t have a CFO. I don’t have someone for HR. I don’t have a business strategist, or a marketing department. I don’t have someone to take out the trash. I do it all myself. Needless to say, I’m tapped.

Or I was. I’ve been using AI every day since GPT dropped almost two years ago. It has saved me hours per day since day one, but this is about much more than saving time isn't just about saving time. With AI I can do things that I could otherwise never do before... like imagine Pikachu hanging with Snoop, The Queen, or Chewie. These really are superpowers, and for me, since day-one its been clear this is going to dwarf any technical transformation that has every come before.

However, there's a natural resistance to change that threatens to hold businesses back. I've seen this before. It's the same resistance I faced back in 1997 when I started Propeller to build websites. Many thought websites would be just a fad (hah!). Today, we're facing a similar resistance to change and skepticism about AI, but this time the stakes are much higher.

Today, in this case the level of disruption and opportunity is at a completely different scale. I do not think any worker or leader can afford to take a wait-and-see approach here. So for the past two years I’ve been pushing for AI literacy to my crew at work, business groups on stages, friends over dinners, and poor souls seated next to me on flights.

Yet, I’m no expert. I’m not a computer scientist, or a silicon valley tech mogul. I’m just a little business owner who wants to share these super powers with others.

So whether you’re a solo entrepreneur, a department head, or the leader of a grand business, I write this to encourage the curiosity of leaders to envision how these tools can improve productivity and quality while opening new doors for businesses and individuals.

The idea isn't to just do more with less, but better with less.

And here is a great example of just that. Here is a Youtube video which I created by first using AI to summarize this article (which I heavily edited). Then I used Synthesia.io to generate the video using AI Avatars. One of the Avatars is a clone of yours truly. Was it quick and easy? Nope, but it will be easier next time and it shows what's possible.

Ok. Let's Dive into this Guide to AI Literacy for Decision Makers

This is a 101 level guide for decision makers, so feel free to skip past the parts you already know. Ultimately I want you to come away understanding the basics of AI, current AI tools and their applications, what is coming next (Agents), and with the writing on the wall, for you to see why now is the time for you and your teams to dive in.

AI image of Pikachu meeting the Queen

Context: The AI Landscape

AI has been quietly enhancing our digital experiences for years, from email autocomplete to streaming recommendations. But the release of ChatGPT in November 2022 marked a paradigm shift. Suddenly, AI wasn't just working behind the scenes - it was out front and accessible to literally anyone with curiosity and the ability to ask questions.

This new generation of AI, based on large language models (LLMs), learns patterns and relationships in language, allowing it to understand context, generate human-like text, and reason about complex topics.

The most exciting part of generative AI is that it doesn’t take a degree in computer science to use it. In fact, it takes virtually zero technical skill to use. All you need is to type or speak to access creativity, strategy and expertise on any topic you can imagine.

AI models span various categories, including:

Large Language Models ( GPT, Claude, Gemini)
Image Generation (DALL-E 3, Midjourney)
Video Generation and Editing (Runway)
Audio and Music Generation (Mubert)
Code Generation (GitHub Copilot)
Data Analysis and Visualization (IBM Watson Studio)
Customer Service and Chatbots (Google's DialogFlow)
Predictive Analytics (DataRobot)

AI of Pikachu gaming with Chewie

Practical Applications For Every Department

At a conference for ski resort operators, I led a panel on AI. From the back of the room came a question to my surprise and delight from the manager of a team of chairlift mechanics. He said he has thick manuals for each piece of equipement that new employees need to learn. He asked if he could upload these manuals into AI and have it produce a trainining curriculum. Hell ya. And AI will soon be able to produce video content to demonstrate every method too.

A key point I often make is that AI is not just for the marketing department to use writing content. No. That’s scratching the surface. Practically any department and position in your organization can and will be using AI - either now, or in the future. So get on it now.

Strategic Planning: Use LLMs like GPT or Claude for SWOT analysis, business strategies, and market trend analysis. Use GPT to hone your next business concept idea, study competition, market demand and write a comprehensive business plan with cost estimates and visual charts and graphs to communicate your idea effectively.
Finance: Create financial models with tools like DataRobot for cash flow forecasting and gain real-time financial insights with AI-powered accounting software like QuickBooks Advanced. How nice will it be to ask your AI CFO to analyze the past 10 years of financial data to determine what segment of your business is lagging or flourishing.
Marketing: Generate ad copy with Jasper AI, create visual content using DALL-E 3, and perform customer segmentation with HubSpot's AI tools.
Customer Service: Implement 24/7 AI chatbots like Intercom and analyze customer satisfaction with MonkeyLearn.
Product Development: Analyze customer feedback with Qualtrics AI, use generative design tools like Autodesk Fusion 360 for prototyping, and forecast demand with BigML.
Operations: Optimize inventory with NetSuite AI, predict maintenance needs with SparkCognition, and optimize logistics routes with Onfleet.
Human Resources: Screen resumes with Greenhouse AI, analyze employee satisfaction with CultureAmp AI, and personalize training with LinkedIn Learning AI.
Legal: Analyze contracts with Kira Systems, monitor regulatory compliance with Cognitiv+, and assist with legal research using Casetext CoCounsel.

What's Coming Next: Agents

Predicting ahead any farther than one’s nose is a fool's errand in this arena. So, I’m only going to look at what I see around this next corner and talk about Agents.

Agents are autonomous systems that can perform complex tasks and make decisions. Imagine having AI specialists for each department or a versatile AI personal assistant managing your schedule, conducting research, and coordinating tasks. Expect to see two classes of agents: specialized “persona” agents that specialize in a particular role such as CFO, and general personal agents who know your preferences, your schedule, your voice and can speak and take actions for you.

This represents an unprecedented opportunity, especially for smaller businesses, virtual workers with PHD level expertise that work tirelessly 24/7 for pennies (apparently we’re stuck with these still, so let’s use them).
Ai image of Pikachu and Kennedy

Cost and Value

Speaking of pennies, the cost for using AI is dirt cheap to use. AI saves me hours every day and when I may bill out at say $200 per hour, that’s significant. I use Chat GPT and Claude for research, strategy and writing. GPT/Dall-e for graphics, and Midjourney for image generation. Each costs only 20 bucks a month. For that I get a team of CXO level assistants to help run my business, and plan for the future. And not just from 9-5. This is beyond no-brainer.

Implementation Strategies

Start Small: Choose one area where AI could make an immediate impact. Perhaps it's using an AI writing assistant for marketing copy using Claude, or an AI-powered analytics tool for customer data. Try using GPT to strategize the next moves for your department or business.
Experiment and Share: Don't be afraid to try different tools and approaches. Maintain a curious, experimental mindset. And lead by example by sharing what you find with your teams and encourage an open dialogue throughout your organization.
Foster AI Literacy: Encourage team learning about AI. Consider setting up "AI Fridays" where team members share discoveries and experiments.
Set Clear Goals: Define what success looks like for your AI initiatives. Is it increased efficiency? Better customer satisfaction? Cost savings?
Provide Training and Establish Guardrails: You cannot just provide AI tools to your teams without instructions and say “go at it”. You must provide guidance on what tools to use for what, and what tools not to use for what. What data can be used, and what data cannot be used. You just don’t want a rogue employee to dump customer data or financials into any AI to test drive.
Stay Curious: The AI landscape is evolving rapidly. Make it a priority to stay up-to-date on new developments and potential applications for your business.

AI of Pikachu and the Dahlai Lamma

Overcoming AI Resistance

Change is hard. It’s human nature to cling to what we know, especially when it comes to the way we work. But if we’re honest, most of us resisted other groundbreaking technologies in the past—like the internet, email, or even smartphones—until we couldn’t imagine our lives without them. AI is no different. The natural instinct to resist change often stems from fear: fear of the unknown, fear of failure, or even fear of being replaced. This mindset isn’t new—history is full of Luddites who tried to halt technological progress, only to find themselves left behind. Resisting AI doesn’t stop its impact; it just puts you and your business at a disadvantage.

Part of overcoming this resistance is through AI Literacy—education that teaches people not only how AI works, but how it can improve their work and quality of life. By understanding AI’s potential, even the most hesitant workers can see that AI isn’t here to replace them, but to enhance their roles. When employees learn how AI can automate routine tasks, boost productivity, and open up opportunities for more meaningful, strategic work, resistance turns into empowerment. The choice is simple: invest in AI literacy, adapt, and lead—or risk falling behind.

AI Impact on Jobs

Although what I just wrote about the positives for overcoming resistance to AI is true, the fear of losing jobs to AI is also real - even if AI companies and companies incorporating AI resist any discussion of this.

Yes. If a position is primarily a set of tasks with repeated patterns and rules, then it will likely be taken over by AI at some point. AI will also inevitably change job roles within your organization. Some tasks may be fully automated, while others will be augmented by AI to enable these workers to focus on higher-value work that requires uniquely human skills like creativity, empathy, and strategic thinking. While many businesses will see this as just an opportunity to cut labor costs, some will see this as an opportunity to attract talent by applying the time savings that AI provides to increase pay and benefits, or work hours per week.

AI as an Equalizer for Small Businesses

One of the most exciting aspects of AI is its potential to level the playing field for startups and small businesses. AI tools are becoming increasingly powerful, accessible and affordable, allowing smaller organizations to access capabilities that were once the exclusive domain of large corporations with deep pockets.

With AI, you can now punch above your weight class. You can analyze market trends like a Fortune 500 company, offer 24/7 customer service like a global corporation, and tap into expertise that would typically require a team of high-priced consultants.
AI of Pikachu and Hulk

Innovation & Entrepreneurial Opportunity

We're entering an era of unprecedented opportunity. For the cost of two beers a month, you can now have access to AI agents that function at the level of a PhD-educated CEO, CFO, COO, in-house counsel, and business strategist - all working tirelessly for your business, 24/7.

This democratization of high-level expertise is revolutionary. We're witnessing the commoditization of knowledge, leveling the playing field for businesses of all sizes. Imagine having the seed of an idea and being able to instantly tap into world-class strategic thinking, financial modeling, legal advice, and operational planning.

Expect a flurry of new businesses and innovation in every sector.

Conclusion

The opportunities ahead are immense. Don't let larger corporations be the only ones to benefit from this AI revolution. Embrace it. Experiment with it. Use it to punch above your weight class.

The future belongs to those who can harness the power of AI to bring their ideas to life. It belongs to those who can blend human creativity and vision with AI's analytical power and tireless work ethic.

Are you ready to lead your business into an AI-powered future? The tools are here. The potential is limitless. The time is now. Let's step boldly into this new age of AI-powered entrepreneurship. The future is waiting, and it's brighter than we ever imagined.