The boardroom conversation has shifted. What used to be optional discussions about “emerging technology” have become urgent strategic imperatives. Business leaders across industries are grappling with tough AI questions that will only grow in number and scope: Does your business have a use case where AI would add value? Should we buy an AI solution? If so, which one? Should we consider hiring someone with AI skills, and what specific qualities should we look for in that candidate?
These questions are tough to answer without literacy in AI. When you gain that literacy, you’ll set yourself apart from your peers in ways that translate directly to the bottom line.
The Data Doesn’t Lie: AI Skills Command Premium Value
According to PwC’s 2024 Global AI Jobs Barometer, sectors that benefit from AI are experiencing almost five times higher growth in labor productivity. The numbers tell a compelling story: postings for AI jobs are growing 3.5 times faster than average, meaning that for every AI job posting in 2012, there are now seven job postings. Perhaps most striking, the World Economic Forum reports that AI skills are becoming more important than job experience in recruitment decisions. For business leaders, this translates to a 25% wage premium for workers with AI skills.
Why Technical Literacy Matters for Non-Technical Leaders
At the core of all successful businesses is the need to make informed decisions, which require data. Today, the sheer volume of data exceeds human capacity to comprehend, making AI a necessity to parse it into meaningful insights. It’s the future of all complex decision-making. And those who can make the best and most informed decisions will command that future.
You don’t need to code to be effective with AI, but you do need foundational technical literacy. This knowledge equips you with the skills to critically evaluate technical solutions, identify when something isn’t working as expected, and ask the right questions. You can detect inaccuracies or inefficiencies in data analysis, ensuring high standards of accuracy and reliability.
Think of it this way: you don’t need to be a mechanic to effectively manage a transportation company, but understanding how engines work helps you make better decisions about fleet maintenance, fuel efficiency, and when your team might be overselling a solution’s capabilities.
The Strategic Imperative: Bridging Technical Teams and Business Stakeholders
The most successful AI implementations happen when leaders can bridge the gap between technical teams and business stakeholders. This requires a strategic and managerial focus that ensures successful AI adoption and implementation across the organization.
Consider the healthcare sector, where virtual care has exploded in recent years. Leaders in healthcare organizations needed to understand not just the business case for telemedicine, but the technical infrastructure required, the regulatory compliance issues, and the change management necessary to shift both provider and patient behavior. Those who possessed this dual literacy, business acumen plus technical understanding, were able to navigate the transition more successfully.
Cutting Through the Hype
AI is a diverse field with impact across almost every industry. While those who code and develop AI models play a huge role, it is equally important to have leaders who can ethically select, scope, manage, and maintain AI projects, identify opportunities for AI in various sectors, and take on the task of keeping updated on this rapidly evolving field.
When vendors pitch solutions or internal teams propose projects, you’ll be equipped to ask the right questions:
- What data does this model require, and do we have it?
- How will we measure success?
- What are the potential failure modes?
- How does this align with our broader business objectives?
- What are the ethical implications?
Future-Proofing Your Leadership
When we look to the future, it’s not far-fetched to envision AI coding itself. Future-proof skills in problem-solving, technical literacy, and strategic management will ensure you can adapt and thrive in changing environments.
The leaders who will command the future aren’t necessarily those who can write algorithms, but those who can:
- Drive business innovation, efficiency, and ethical decision-making by leveraging an understanding of AI technologies
- Critically assess the limitations and capabilities of AI technologies to ensure AI-driven business solutions align with organizational objectives
- Ensure responsible and compliant AI implementation by applying governance frameworks and ethical guidelines
- Communicate AI concepts and solutions effectively to diverse stakeholders
- Manage the complete lifecycle of technology projects, ensuring successful implementation and alignment with business objectives
The Path Forward
The reality is that AI literacy has become as essential for business leaders as financial literacy was a generation ago. You wouldn’t hire a CEO who couldn’t read a balance sheet, and increasingly, you won’t hire leaders who can’t navigate the AI landscape.
The good news? You don’t need to become a data scientist. You need to become conversant in the language of AI, understand its capabilities and limitations, and develop the judgment to deploy it strategically.
For business leaders ready to develop these critical skills, the investment in AI education positions you and your organization to lead in an AI-driven economy. The question isn’t whether AI will transform your industry. It’s whether you’ll be leading that transformation or scrambling to catch up.
The leaders who understand AI’s potential and limitations today will be the ones making the strategic decisions that define their industries tomorrow. The technical details matter less than the strategic insight to know when, where, and how to deploy these powerful tools.
AI literacy is the foundation of informed decision-making. And informed decision-making, as always, is what separates successful leaders from the rest.
Ready to develop the AI leadership skills that will define the next decade of business success?
Pfeiffer University’s MBA program with AI concentration is designed specifically for working professionals who need to master AI strategy without getting lost in the technical weeds. Learn how to drive innovation, evaluate AI solutions, and lead your organization confidently into an AI-driven future.
Learn more about Pfeiffer’s MBA in AI program and take the first step toward AI-fluent leadership at explore.pfeiffer.edu.