Week 1

The AI Reality Check

What executives are getting wrong about AI and how to develop a realistic, strategic perspective on digital transformation

3 Chapters
2-4 Hours
100% Executive Focus
This Week's Insights from "Surviving and Thriving in the Age of AI"

Chapters 1-3

by Alan W. Brown

Week 1 draws from Chapters 1-3 of the book, focusing on the digital revolution context, disciplined transformation approaches, and leadership paradoxes that define successful AI adoption.

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Executive Summary

Critical Insights

  • AI is not just another technology tool—it's a fundamental force reshaping organizations
  • Digital transformation requires a disciplined approach, not just technological adoption
  • Leaders must navigate paradoxes: control vs. agility, stability vs. innovation

Strategic Questions

  • Is your organization treating AI as a tool or a transformation?
  • What paradoxes is your leadership team currently navigating in digital change?

Action Items

  • Conduct an AI readiness assessment across your organization this week
  • Map your current digital transformation approach against the "two-speed" model

Time Investment

Reading 60-90 min
Reflection 15-30 min
Activities 15-30 min

Learning Objectives

1

Understand the Digital Revolution

Grasp the fundamental nature of the digital revolution and its impact on modern organizations, recognizing that this is not just another technological advancement but a fundamental shift requiring strategic rethinking.

2

Disciplined Transformation Approach

Recognize the strategic importance of a disciplined approach to digital transformation in the age of AI, moving beyond ad-hoc technology adoption to systematic organizational change.

3

Navigate Leadership Paradoxes

Identify and reflect on the key paradoxes presented by digital disruption for established organizations, developing frameworks for managing competing priorities and tensions.

Week 1 Video Summary

Watch this video summary to reinforce your understanding of Week 1 concepts: The AI Reality Check, digital transformation fundamentals, and leadership paradoxes in the age of AI.

Weekly Chapters

Chapter 1: Introduction

This section discusses the rapid advancements in AI capabilities and the polarized debate surrounding its societal impact. The introduction also touches on the "new normal" emerging post-Covid-19, supported by digital products and services, and how recent AI advances could lead to transformational changes beyond just continuity.

Read Chapter 1

Chapter 2: The Digital Revolution

This chapter explores why a digital revolution necessitates a radical rethinking of strategy for organizations to thrive in the new landscape. The text emphasizes that recognizing the magnitude of these changes is crucial for organizations to survive and thrive.

Read Chapter 2

Chapter 3: A Disciplined Approach

This chapter focuses on the necessity for a disciplined approach to digital transformation. It delves into how newer companies leveraging AI advances operate with radically new management behaviors and decision-making processes.

Read Chapter 3

Knowledge Check Quiz

Test your understanding of Week 1 concepts with these interactive questions

1. According to the introduction, what are the three key questions the book focuses on regarding AI?

The introduction frames the discussion around three questions: what AI really is in practical business terms, why it matters now in the broader digital revolution, and how leaders should respond. It anchors AI in strategy and outcomes rather than technology buzzwords.

2. The reading suggests that AI advances are having a profound effect by challenging core aspects of what two entities?

AI is challenging the core of both organizations and leadership. It pressures existing structures, processes, and cultures, while also demanding new leadership mindsets, judgment, and ethical responsibility.

3. What is the primary goal of the reading regarding AI understanding for leaders?

The reading aims to give leaders a clear, non-technical grasp of AI that translates into action. It emphasizes disciplined, value-driven choices over trend-chasing, so adoption is responsible and results-oriented.

4. What are the five main themes around which the reading provides perspectives for surviving and thriving in the age of AI?

Five themes structure the guidance: understanding the digital revolution's context; adopting a disciplined approach to transformation; developing leadership mindsets to navigate paradox; designing two-speed organizations; and building resilience for a VUCA environment. Together they offer a practical lens to survive and thrive in the age of AI.

5. Chapter 1 argues that executives and leaders often underestimate what aspect of digital transformation?

They often underestimate the magnitude and systemic nature of digital transformation. It is not a tooling update but a fundamental rethink of strategy, operating models, and culture.

6. The author emphasizes that recognizing the magnitude of digital changes is crucial for organizations to do what?

It enables organizations to survive and thrive by aligning strategy, investments, and governance with the true scale of change. Recognizing the scope prevents incrementalism and focuses effort on real value creation.

7. What is the "first key lesson" for leading digital transformation if we admit we are undergoing a revolution?

Lead it as a revolution, not a project. That means adopting new mental models, encouraging experimentation, and guiding with purpose instead of relying on legacy playbooks.

8. Explain the concept of a "two-speed" organization as described in Chapter 1.

A two-speed organization runs the core for reliability and efficiency while exploring new digital opportunities at startup speed. It deliberately balances operational stability with rapid learning cycles and innovation.

9. What are the four characteristics of VUCA (Volatility, Uncertainty, Ambiguity, Complexity) that define the digital economy according to Paradox 1?

VUCA highlights Volatility (fast, high-amplitude change), Uncertainty (limited predictability), Complexity (many interdependent variables), and Ambiguity (signals that are hard to interpret). Leading in VUCA calls for shorter feedback loops, adaptability, and crisp intent.

10. In Paradox 2: "keep control by owning less," what is suggested regarding physical assets and workforce capabilities?

It suggests retaining strategic control while owning fewer physical assets by leveraging platforms, partners, and ecosystems. Real control comes from standards, data, and capabilities—especially a skilled workforce—rather than sheer ownership.

Activities for Consideration

Personal Reflection

Reflect on how your current organizational models and frames of reference might be challenged by the digital revolution and the rise of AI. Where do existing approaches break down?

Organizational Assessment

Consider if your organization operates as a "two-speed" entity, balancing operational stability with rapid learning cycles and innovation.

Paradox Exploration

Choose one of the five paradoxes (e.g., "be comfortable with being uncomfortable") and discuss with a colleague how it manifests in your daily work and how your organization is addressing it.

Further Reading & Viewing

MIT Sloan Management Review

"Digital Transformation: A Roadmap for Success" - Comprehensive framework for digital transformation initiatives.

Read Article

McKinsey & Company

"The Changing Nature of Organizations in the Digital Age" - Analysis of organizational evolution in digital transformation.

Read Article

Harvard Business Review

"Leading in a VUCA World" - Leadership strategies for volatile, uncertain, complex, and ambiguous environments.

Read Article

TED Talk: The Future of Work

"How AI and Automation Will Change the Future of Work" - Insights on preparing for the AI-driven workplace transformation.

Watch Video

YouTube: Digital Leadership

"Leading Digital Transformation" - Practical strategies for executives navigating organizational change in the digital era.

Watch Video

Course Progress

Ready for Week 2?

You've completed the foundation of AI understanding. Next week, we'll dive deeper into AI capabilities and how to distinguish between hype and reality.

Week 1 Complete
Ready for Week 2